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Huntly Power Station secures Role in New Zealand’s Energy Future Through 2035
Auckland, New Zealand – Genesis Energy has formalized an agreement with major power companies to extend the operational life of the Huntly Power Station, securing its critical role in New Zealand’s electricity supply through 2035 [2]. This move aims to stabilize the power grid as the nation increases its reliance on intermittent renewable energy sources.
Huntly’s Rankine Units: A Vital Backup for Renewables
The agreement emphasizes the continued importance of the Huntly plant’s Rankine units, which provide essential backup power as more wind and solar generation are added to the grid. These units are crucial for maintaining a stable electricity supply, especially during periods when renewable sources are not consistently available [1].
Did You No? KPMG’s recent review indicates that Huntly’s Rankine units will likely be even more necessary in the 2030s as renewable energy generation increases.
Collaboration for Energy Security
Genesis Energy has signed a detailed, non-binding terms sheet with Mercury, Meridian, and Contact, outlining how the proposal to extend the life of the Huntly Power Station will function. This collaboration underscores the commitment of New Zealand’s major power companies to improve energy security [2].
The agreement is expected to be in place by January 1,2026,with a term of up to 10 years. This will allow retiring Rankine capacity to remain in the market, supported by a strategic fuel reserve to ensure security of supply.
battery Storage Enhancements at Huntly
In addition to extending the life of the Rankine units, Genesis Energy is also constructing a 100MW/200MWh battery storage system at the Huntly Power Station. Announced on June 5, 2025, this project will further enhance grid stability and manage the intermittent nature of renewable energy sources [3].
pro Tip: battery storage systems are becoming increasingly critically important for managing the variability of renewable energy and ensuring a reliable electricity supply.
Industry Reaction and Future Steps
The Major Electricity Users’ Group (MEUG) has welcomed the agreement but emphasizes the need for further action to maintain sufficient flexible firming generation. MEUG also advocates for single-party oversight of security of supply to ensure clear accountability.
Genesis energy requires certainty by early November to finalize planning and complete necessary works for the Rankine units to be available for the winter of 2026. The company is also exploring the use of biomass as a fuel to gradually replace coal.
huntly Power Station: Key Facts
| Fact | Details |
|---|---|
| Location | Waikato region, New Zealand |
| Generation Capacity | 1,200 MW |
| battery Storage | 100MW/200MWh (under construction) |
| agreement Term | Up to 10 years (through 2035) |
The Role of Thermal Power in a Renewable Future
As New Zealand transitions towards a greater reliance on renewable energy, thermal power stations like Huntly continue to play a crucial role in ensuring grid stability.these plants provide a reliable source of electricity during periods when renewable sources are unavailable,such as during droughts or when wind and solar generation are low.
The strategic importance of Huntly power Station is further underscored by its location in the Waikato region, home to New Zealand’s largest river and lake, providing essential resources for power generation.
Frequently Asked Questions About Huntly Power Station
What is the primary role of the Huntly Power Station in New Zealand’s energy grid?
The Huntly Power Station primarily provides backup power and grid stabilization,especially as New zealand integrates more intermittent renewable energy sources.
How does the Huntly Power Station contribute to energy security?
By maintaining flexible generation capacity, the Huntly Power Station helps protect against dry-year risks and the variability of renewable energy sources, ensuring a reliable electricity supply.
What is the meaning of the 100MW/200MWh battery storage system being built at Huntly?
The battery storage system will enhance grid stability and manage the intermittent
