Meridian’s hydro lakes are in good shape as New Zealand moves into the second month of winter, thanks to regular rain, careful balancing of hydro and wind generation, and proactive action from the electricity industry to boost security of supply.
Wholesale electricity prices have also dropped considerably.
“Supply being managed carefully and low spot prices – this is the market doing what it was designed to do and working in the interest of all New Zealanders,” says Meridian Chief Executive Mike Roan.
“The welcome boost we’ve seen in our hydro storage is the result of regular rain since April, rather than the damaging events we’ve seen in other parts of the country over the last week.”
Across the country, controlled hydro storage was at 101% of average for the time of year.
Among the storage lakes that Meridian manages, the Waiau catchment (which feeds Lakes Te Anau and Manapōuri) is 89% full, or 131% of average for the time of year, while Lake Pūkaki is 61% full, or 93% of average for the time of year.
That storage, along with increased thermal fuel reserves, has seen wholesale (spot market) prices soften considerably, with average prices last week of $91 in the North Island and $85 in the South Island. Forward market prices at Otahuhu for 2025 have also halved, having fallen from $300/MWh in March and April to $150/MWh currently.
“We’re continuing to work towards increasing New Zealand’s hydro storage capacity to help boost security of supply and reduce electricity prices for homes and businesses,” says Mike Roan. “Gaining access to more water at assets where the built infrastructure is already in place is an opportunity New Zealand needs to capitalise on. It can happen more quickly and with less environmental impact than any form of new generation.”
While around 60% of New Zealand’s electricity comes from hydro generation, only 23% of that capacity can be stored in lakes, and Meridian’s own lake storage equates to only 15 weeks of average generation.