Greenmail?
OPINION: In the latest example of how broken the RMA consents process is, Meridian Energy has paid out DoC, Fish & Game and iwi rather than risk them blocking the renewal of consents that it needs to keep running its Waitaki hydro scheme.
Meridian sought approval under the Fast-track Approvals Act to allow access to water stored between 518 and 513 metres above sea level prior to the point where Transpower estimates there is a 4% risk of electricity shortage.
“We’re very pleased with the Panel’s draft decision. When the pressure’s on like it was in Winter 2024, every extra metre makes a big difference,” says Meridian Chief Executive Mike Roan.
Access Will Lower Prices
Roan says that access to contingent storage will lower the price of electricity traded in the wholesale market by increasing the amount of renewable, lower cost fuel available.
"This will in turn put downward pressure on the fixed rates retailers offer to residential and business customers, which is our number one priority," he says.
“We also respect and appreciate the views of commenters in the Fast-track process that raised concerns regarding eased access to contingent storage. Given these concerns and the positive hydro storage outlook for Winter 2026, we propose that, if the draft decision is confirmed, we will continue for the rest of 2026 to treat half of the five metres of contingent storage as only accessible when there is a heightened risk to security of supply.”
Further Discussions To Be Held
The company plans to hold further discussions with key electricity industry stakeholders during 2026 on this topic.
In addition to the contingent storage access, the Fast-track Panel’s draft decision also grants Meridian permission to permanently install rock armouring at Pūkaki Dam to ensure its resilience to wave erosion when operating the lake at lower levels.
The Panel is required to release its final decision by 3 July 2026.
