Meridian to Repower Iconic Waitaki Power Station to Boost Energy Output
Meridian Energy has announced a complete overhaul of its historic Waitaki Power Station, confirming plans to replace all seven turbines and generators in a project that introduces a new fifty-year asset accounting category.
Capital Expenditure and Accounting Treatment
The total capital expenditure guidance for the 2027 financial year remains steady between $370m and $410m. Within this envelope, stay-in-business capital expenditure is projected at between $110m and $120m, while growth capital expenditure is slated between $220m and $250m. A dedicated repowering capital expenditure category of $40m has been established specifically for the Waitaki overhaul.
According to Mike Roan, the revised accounting treatment was explicitly designed to project Meridian’s dividend profile. By creating a distinct repowering category spread over a 50-year asset life, the company mitigates near-term yield compression while executing heavy infrastructure renewal.
Execution Strategy and Historical Context
Constructed initially as a make-work project during the 1930s Depression, the Waitaki Power Station started generating electricity in 1935. The current upgrade involves replacing turbines, generators, cranes, and auxiliary gear across all seven generating units. Contractors Voith Hydro will supply the turbines and generators, while Gentec Solutions manages the headgates and associated works.
Engineers will extract and restore one unit at a time to maintain base generation capacity throughout the works. The station currently generates enough electricity for about 51,000 average homes. Beyond raw output gains, the overhaul targets enhanced seismic resilience, improved operational reliability, and better performance standards.
Broader Hydro Upgrades Across New Zealand
The Waitaki modernization complements a wider industry trend of heavy hydro asset renewal as New Zealand transitions away from thermal fuels toward intermittent wind and solar generation. Hydro stations provide essential system firming, backed by major storage assets like Lake Pūkaki. Meridian has already increased the operating capacity of its existing hydro assets by 75MW over the past two years.
Mercury is investing $550 million across its Maraetai, Ōhakuri, and Ātiamuri historic hydro stations to boost output by up to 58MW. Meanwhile, Contact Energy has completed turbine upgrades at its Roxburgh station, and Genesis has targeted upgrades across its Waikaremoana, Tongariro, and Tekapo systems.