New Zealand energy generators propose strategic reserve and solar expansion

Major electricity generators in New Zealand, including Genesis Energy, Mercury, Meridian, and Contact, have proposed a long-term agreement to establish a strategic energy reserve. The plan includes retaining the Rankine units at the Huntly power station to provide resilience and flexibility against declining domestic natural gas supplies and the volatility of intermittent renewable energy.

In a separate move toward renewable expansion, Genesis Energy has reached a final investment decision on the NZD 125 million Leeston Solar Farm in the Canterbury region of the South Island. The 70 MW project, which will utilize approximately 74,000 solar panels, is expected to begin generating power in 2028 and produce roughly 110 GWh of electricity annually. This project is part of a broader strategy by Genesis to invest NZD 2.2 billion in new renewable generation and battery storage by 2032.