Meridian Energy turns 10, seeks offshore wind opportunities

Turbines at the Te Apiti wind farm south of Woodville generate 90 megawatts of electricity for Meridian Energy. Photo / Tamara Eastwood

Meridian Energy, which this year celebrates its 10th anniversary of listing on the NZX, has joined the club of power generators to explore the possibility of offshore wind power in New Zealand.

Chief executive Neal Barclay, in speech notes for today’s annual meeting, said the 51 per cent state-owned company had teamed up with Belgian offshore wind developer Parkwind to jointly explore opportunities in New Zealand.

“The risks and complexities of building wind farms in the ocean are far different than onshore, and it is great to have an experienced partner on board to position us to harness Aotearoa’s offshore wind potential,” Barclay said.

Efforts will focus principally on the Taranaki coast and build on work already undertaken by Parkwind, including engagement with the iwi of Taranaki and key stakeholders.

Depending on the outcome of the joint exploration, the two parties may decide to work towards a feasibility permit.

“Both parties are interested in long-term investments and relationships, following a build to own and operate business model,” Barclay said.

A handful of other companies are at various stages of exploring the potential of offshore wind.

Renewable energy specialist Copenhagen Offshore Partners (COP) last year joined with NZ Super to look into prospects for offshore wind power generation off the Taranaki coast.

BlueFloat Energy, a Spanish company, is also sizing up its prospects In New Zealand. The wind energy developer is owned by US green energy investor 547 Energy.

Australia’s Oceanex Energy is also in the early stages of development of up to three projects off the New Zealand coast.

Chair Mark Verbiest, in noting the 10th anniversary of Meridian’s listing, said total shareholder returns over that time totalled 380 per cent, compared to the NZX50 growth over the same period of 130 per cent.

“It’s fair to say the company has performed well for investors since listing,” he said.

Looking forward, he said the sale of Meridian’s Australian operations in January 2022 strengthened the company’s balance sheet.

Meridian now had the investment capacity to support the growth strategies of its retail, renewable generation and Southern Green Hydrogen Projects.

Barclay, in reviewing the company’s past financial year, said power generation numbers were healthy and that there had been continued growth in retail sales.

“Whilst we reported a net profit after tax of $95 million for the year ended 30 June 2023, the accounting result was heavily influenced by a negative $375m net change in fair value of energy hedges,” he said.

In August, Meridian said it planned to spend $3 billion this decade on renewable energy projects, over and above the soon-to-be-completed Harapaki Wind Farm, near Napier.

Meridian has already invested heavily in renewables, mostly wind, over the years.

On completion, Harapaki - which will be New Zealand’s second-biggest wind farm - will have 41 turbines generating 176 megawatts (MW) of electricity.

That’s enough to power more than 70,000 average households.

Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.