The company will use profits from the Kupe gas field to support a $1.1 billion program to build new renewable generation and grid scale battery storage between now and 2030.
“Electrifying the economy is the pathway to achieving net-zero 2050,” said Genesis chief executive officer Malcolm Johns.
“New Zealand needs to move from 40 per cent of energy drawn from electricity today to more than 70 per cent by 2050.
“That means electrifying our homes and businesses much faster than we are currently.”
As part of a strategy reset, Gen35, investment will be made into solar, grid scale battery storage and wind that will help grow Genesis’ renewable portfolio to around 8,300 gigawatt hours (GWh).
This is a 160 per cent increase on Genesis’ current 3,200 GWh of renewable generation. Genesis’ proportion of renewable generation is targeted to rise to 95 per cent by 2035, the same level as New Zealand’s overall generation.
Details on the development pipeline, the new lower-cost Retail operating model and a 10-year financial plan will be outlined on 30 November.
“Genesis has a key role to play in achieving all of this and we have a long-term vision and strategy for growth and value creation for shareholders,” Johns said.
“On the demand side, we will be focused on partnering with our customers to accelerate electrifying how they live, work and move.
“On the supply side, this includes optimising existing generation assets to take them deeper into the transition, developing more renewables and investing in grid scale firming and flexible generation.”
Huntly Power Station by virtue of its location, firming capability and connection to critical national infrastructure will continue to be a centre piece of the company’s supply side plans together with hydro assets and more solar and wind.
“Huntly Power Station is a generation site of national value that will ensure electricity flows uninterrupted as demand increases and the sector builds new renewables,” Johns said.
“The size and scale of the transition is known; the demand growth is less clear but there is no market segment or political constituency for cold showers by candlelight.”
Progress is being made toward biomass replacing coal and this may open up some interesting regional economic development opportunities and jobs.
Staged development of up to 400 megawatts (MW) of battery capacity is underway.
Unit 5 may be adapted in future to generate on hydrogen, and operate as a fast-start peaker to advance Genesis’ grid scale firming and peaking capabilities.
“Huntly is a portfolio of assets, fuels and unique human skills, available to secure the grid today and fill the portfolio option in the NZ Battery project,” Johns said.
“It is a logical and cost-effective option to support the country through the energy transition and beyond.”
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