Meridian and other parties have signed a contract with Genesis Energy that will allow us to access back-up supply in the event of a dry year and during periods of peak demand.
Meridian, like all retailers in the market, puts arrangements in place to help us cover our commitment to our customers.
Meridian generates 100% of its electricity from renewable sources: wind and water. The reality of this means that New Zealand power system is occasionally vulnerable to fluctuations in supply. This agreement with Genesis means that Meridian can continue to meet the energy needs of customers at all times, and also enables a more secure and efficient power system.
We have had dry year ‘insurance’ in place for a number of years. The last time this was used in a significant way was in 2012 when we experienced New Zealand's driest hydro period on record. Because we were able to access supply from an arrangement like this, the electricity market managed the driest conditions ever without experiencing power shortages or public requests for energy conservation.
We remain committed to a better energy future and believe that we can - and will – continue to grow the percentage of energy generated from renewable sources over the coming years. This arrangement with Genesis will help us and other power companies manage the transition to a more renewable future in a way that is affordable to consumers and avoids power shortages in times of peak demand and dry periods.
New Zealand is a renewable energy leader, having gone from 65% to more than 80% renewable energy generation in the last ten years. Meridian’s input has been significant and we currently make the largest contribution to the Government’s target of 90% renewable generation by 2025.