Meridian Energy secures 35-year Waitaki approval

• The New Zealand Environment Court approved a 35-year extension for the operation of the Waitaki Power Scheme.
• The decision allows the company to retain its current storage levels, operating conditions, and generation capacity.
•  The approval provides long-term operational certainty for business planning and the national electricity market.

The New Zealand Environment Court has granted final approval for Meridian Energy (ASX:MEL) to operate its Waitaki Power Scheme for another 35 years.

The terms outlined by the court ensure that the company retains its historical generation capacity without any immediate changes to its environmental footprints or local water storage levels.

“Hydro generation is the cheapest and cleanest firming solution for New Zealand’s electricity system, and knowing we can continue to operate Waitaki for another 35 years provides certainty to our business, the electricity system and the economy,” said Meridian Energy CEO Mike Roan.

Under the secondary terms of the contract, the company will immediately scale up its indigenous biodiversity management within the local catchment through the Department of Conservation.

The business stated that the asset will continue to act as a significant stabilising driver for the national grid while management explores further capacity expansions.

Following the announcement, the Meridian Energy share price was up at $5.97.

The specific asset consists of six company-owned power stations that deliver an installed capacity of 1,553 megawatts.

This total output represents approximately 30% of the overall hydroelectricity capacity for the entire nation.