Silver lining to rain-laden clouds over Aotearoa
Power company Meridian Energy said its hydro lakes were "in good shape as New Zealand moves into the second month of winter" thanks to regular rain and actions from the electricity industry to boost security of supply.
"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," said Meridian chief executive Mike Roan.
Among the storage lakes that Meridian managed, the Waiau catchment (Lakes Te Anau and Manapōuri) was 89% full, or 131% of average for the time of year, while Lake Pūkaki was 61% full, or 93% of average for the time of year.
Lake Pūkaki (file image). (Source: Meridian Energy)
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That storage, along with increased thermal fuel reserves, has softened wholesale prices 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.
"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," Roan said.
The morning's headlines in 90 seconds, including Australia's weather bomb, the surprising costs of getting one more dog, and BTS are back. (Source: 1News)
"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."
He said Meridian was working toward increasing New Zealand's hydro storage capacity, to help boost security of supply and reduce electricity prices for Kiwi homes and businesses.
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