Mercury suspends non-essential work

Mercury will suspend construction work across its sites under Covid-19 level four directions.

This includes the standing down of activity at its Turitea wind farm in the Manawatu.

Mercury’s focus must be on the safety and wellbeing of its people while maintaining energy supply and services to customers and for New Zealand through this time of uncertainty, acting chief executive William Meek says.

“As non-essential construction work must be halted as part of New Zealand’s response to Covid-19, Mercury in conjunction with its contractors has immediately started securing its Turitea wind farm construction site and putting a temporary hold on certain other work currently in progress,” he says.

The Turitea wind farm’s northern zone turbines were scheduled to be generating electricity this coming summer, with the remaining southern zone turbines expected to be completed late in calendar year 2021.

Commissioning is expected to be delayed by the duration of any suspension although efforts will be made to accelerate work if and when safe and practical to do so.

Ultimately, the $464 million project is expected to add $55m to Mercury’s EBITDAF (northern zone $30m/southern zone $25m).

Mercury will monitor Covid-19 response levels, and work with Vestas, Electrix and Transpower to re-start construction at an appropriate time.

A geothermal well drilling programme at Rotokawa will also be paused.

Important planned maintenance activity will be completed at some power stations to return generating units to service essential to the country’s electricity security of supply during winter.

“Mercury is well prepared to support the nation’s response to the evolving Covid-19 coronavirus pandemic, with a focus on our people, our customers and on business continuity,” Meek says.

“And that includes making important decisions in relation to current growth and development activity.”