Meridian secures final approval for additional hydro storage

Meridian Energy has received final approval to ease access restrictions on Lake Pūkaki’s hydro storage, providing additional security for New Zealand’s electricity system through to winter 2028.

The decision by the Fast-track Panel allows Meridian to access additional storage in the lake over a three-year period, helping reduce the risk of electricity shortages and associated price spikes during dry years.

Chief executive Mike Roan says the approval will provide an important buffer while new generation capacity is built.

“Hydro generation provides around 60% of the country’s electricity and offers storage that can play a key role when alternative sources like solar and wind are not available. Its challenge is that only 23% of that capacity can be stored in lakes, and Meridian’s own lake storage equates to only 15 weeks of average generation. Today’s announcement gives us a buffer if a dry year puts pressure on that storage.”

Roan says Meridian will use the additional storage cautiously.

“We already manage our hydro storage carefully, and we’ll be just as careful with this extra storage.

“That’s why we have committed to only using it over the remainder of 2026 if there’s heightened risk to security of supply. Even then, given current lake levels, we don’t expect to use more than half of the five metres available this year.”

The Fast-track Panel has also approved the permanent installation of rock armouring at Pūkaki Dam to improve its resilience against wave erosion when the lake is operating at lower levels.

Meridian says the additional storage will help improve security of electricity supply while New Zealand continues to expand its renewable generation capacity.