Meridian opens $186m battery farm to boost Northland's energy resilience
However, it could also mean power gets reinstated more quickly after events such as the blackout caused when one of the pylons carrying the region's main electricity supply north of Auckland collapsed last June.
Perched about a kilometre from Northland's largest port and opposite a Transpower substation, the storage system is Meridian's first project in Northland and phase one of its planned Ruakākā Energy Park.
Already connected to the national grid for activation once final tests are complete, the facility was officially opened on Friday.
Meridian's general manager of development Guy Waipara said the facility was capable of storing 200 megawatt hours of power and at full capacity, could release 100 megawatts of power for two hours to 60,000 households.
It represented a growing trend towards distributed energy resources that could respond quickly to grid needs while supporting the shift to renewable energy, Waipara said.
'When demand is low and power is cheap or there's lots of wind or solar power being generated, we can charge the system.
'When demand peaks – like at 7pm when everyone comes home and turns on their ovens – we can discharge stored power."
Waipara said that balancing capability reduced reliance on fossil fuel plants that would otherwise need to be activated during peak demand periods.
The storage system could be charged when power prices were cheaper or power was in lesser demand, for instance overnight, or when there was lots of wind or solar power being generated.
It could potentially undergo daily charging and discharging cycles multiple times daily, depending on demand patterns and renewable energy production.
Stored power could be released at peak times but also if there was a problem with the grid.
It would be a crucial support for the second stage of Meridian's Ruakākā Energy Park – a $227 million solar farm planned for the 172ha adjoining the 2ha corner on which the battery storage facility sits.
Work on the farm was expected to start this August with power production possible in 2027.
Waipara said specific details about the system's role during major infrastructure failures were not yet known.
However, the increased localised generation and storage capacity in Northland would inherently improve the region's resilience in an electricity crisis.
It couldn't prevent a blackout of the type caused when a pylon collapsed but could accelerate recovery by providing power for extended periods.
Together the two assets – the storage facility and the solar farm – would help restore power where it was crucially needed markedly faster, Waipara said.
Having power at their door, would enable distribution companies to better manage supply to critical infrastructure like CBDs, hospitals, and schools.
Waipara could not say whether the projects would bring down the region's notoriously high power prices.
However, he said it would certainly put downward pressure on them.
Asked about the consent process for the planned 250,000-panelled solar farm, Waipara said it had been lengthy and expensive.
In January this year, the Environment Court signed off a mediated agreement between Meridian, Forest and Bird, and Fish and Game. The environmental organisations had concerns, particularly about the protection of local wetlands.
The company agreed to fence off 9ha of wetland areas on the wind farm site and to establish a new 5ha wetland near the Ruakākā shops.
Waipara said he was personally excited about those projects, which would include the installation of about 200,000 new plants.
He said Meridian had been working closely with local hapū since 2021 and would continue to do so.
He said a key lesson for the company was the importance of reaching agreements with stakeholders before going to adjudication.
Waipara emphasised the need to 'come up with an agreement that makes sense for all parties involved' rather than relying on the formal RMA (Resource Management Act) process.
The community was expected to benefit from some of the 100 jobs likely to be created by the energy park.
Meridian had also prioritised using local contractors where possible, Waipara said.
He said the company would undoubtedly make use of the Fast Track Approvals Act 2024 in future but that would not lessen its commitment to high environmental and cultural standards.
Fast-tracking shouldn't mean cutting corners on ecological work, stakeholder engagement, or iwi consultation, Waipara said.
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