Meridian Energy

Meridian Energy

Type	Public company
Traded as	NZX: MEL ASX: MEZ
Industry	Electricity generation Electricity retailing
Predecessor	Electricity Corporation of New Zealand
Founded	16 December 1998 (16 December 1998)[1]
Headquarters	Wellington, New Zealand
Key people	Neal Barclay, Chief Executive
Revenue	NZ$2,319 million (2017)[2]
Operating income	NZ$653 million (2017)[2]
Net income	NZ$197 million (2017)[2]
Total assets	NZ$8,665 million (2017)[2]
Total equity	NZ$5,082 million (2017)[2]
Owner	New Zealand Government (51.02%, 2016)
Number of employees	959 (2017)[2]
Subsidiaries	Powershop
Website	meridianenergy.co.nz

Meridian Energy Limited is a New Zealand electricity generator and retailer. The company generates the largest proportion of New Zealand's electricity, generating 35 percent of the country's electricity in the year ending December 2014, and is the fourth largest retailer, with 14 percent of market share in terms of customers as of December 2015.^[3][4]

Meridian was one of three electricity companies formed from the break-up of the Electricity Corporation of New Zealand (ECNZ) in 1998–99, taking over the Waitaki River and the Manapouri hydro schemes. Originally a state-owned enterprise wholly owned by the New Zealand Government, the company was partially privatised in October 2013 by the Fifth National Government, with the government retaining a 51.02% shareholding.

Today, Meridian operates seven hydroelectric power stations and one wind farm in the South Island of New Zealand, four wind farms in the North Island, and two wind farms in southern Australia – one in South Australia and one in Victoria. It is one of three major electricity generators to only generate electricity from renewable sources (the others being Trustpower and Mercury Energy), and the only electricity generator in New Zealand to commit itself to only generate electricity from renewable sources.

History

Meridian originated from the break-up of the Electricity Corporation of New Zealand (ECNZ) in 1999 as a result of the reforms of the New Zealand Electricity Market. Meridian's share of ECNZ was corporatised as a state-owned enterprise with its own board of directors and with two Ministerial shareholders: the Minister of Finance and the Minister of State-Owned Enterprises. In 2013 it was partially privatised by the fifth National Government of New Zealand.^[5]

As part of reforms, local electricity companies were split into lines and retail and the retail portion sold off. Meridian initially acquired the retail base of Northpower, Centralines, Scanpower, and Network Waitaki, and later acquired Orion's retail base from NGC.

• 2001 – Meridian purchased five mini hydro-power stations in Australia. These stations linked with dams used primarily for irrigation, and have a total generating capacity of 62 MW.
• September 2001 – Meridian purchased the South Island customer-base of Natural Gas Corporation (NGC), at the time New Zealand's largest electricity retailer. The purchase came towards the end of an exceptionally dry autumn. Low hydro-levels had driven the wholesale market spot prices to very high levels. NGC had purchased the customer-base when Canada's TransAlta quit New Zealand. NGC re-branded itself as OnEnergy to escape the poor reputation of the "TransAlta" brand. OnEnergy found itself with insufficient generation capacity to stand the high winter market prices, and had made the critical mistake of not purchasing any hedge contracts. It attempted to raise its retail prices, but its customers then flocked to other retailers. Finally, after suffering huge losses, NGC had perforce to quit the retail sector, selling its customer-base to two of the Government's companies: Meridian and Genesis Energy. At that point the New Zealand electricity market became further vertically integrated, and many have come to believe that this adversely affected competition in the retail electricity market.
• April 2003 – Meridian extended its operations in Australia with the purchase of Southern Hydro, increasing its Australian generating capacity by 540 MW.
• Southern Hemisphere Winter 2003 – Low hydro inflows and storage levels again resulted in exceptional wholesale market spot prices. As a consequence, the retailers TrustPower and Freshstart abandoned market areas where they had no generation. This strengthened Meridian's dominance of the South Island customer-base.
• 29 March 2004 – Meridian cancelled Project Aqua, a controversial 524 MW power scheme for six dams and a man-made canal on the Lower Waitaki River in North Otago. The scheme allegedly represented the last opportunity for large-scale hydroelectric development of this magnitude in New Zealand. Abandoning the venture cost Meridian NZ$38.7 million. – Meridian stopped the scheme because of uncertainty over rights to use the water, growing costs, and the difficulties and uncertainties with obtaining consents under the Resource Management Act legislation. In July 2004, Meridian announced an independent audit of the abandoned scheme.
• 9 December 2004 – then Prime Minister Helen Clark officially opened the Te Apiti Wind Farm – Meridian's first wind farm.
• 2 June 2005 – Meridian announced a proposal to develop a wind farm west of Wellington, Project West Wind with up to 70 wind turbines with a total capacity of 210 MW, built across 55.8 square km on rural land near Makara at the south-western tip of the North Island. A local pressure group, the Makara Guardians, opposed the scheme. Successful application for resource consent for the project was announced on 21 December 2005. The consent was subsequently appealed and upheld in May 2007.^[6]
• 30 November 2005 – Meridian completed the sale of its Australian operation, Southern Hydro, for A$1.42 billion (NZ$1.52 billion) to Australian Gas Light Company. Meridian had steadily expanded and upgraded its assets in Australia since purchase, including commissioning a 91 MW wind-farm. The sale commanded a hefty premium, driven by new demand for renewable energy-generation because of mandatory Australian requirements that electricity retailers sell a proportion of renewable energy.
• 8 June 2007 – The White Hill Wind Farm is officially opened.^[7]
• 29 April 2009 – Prime Minister John Key officially turns on the first 15 turbines on the West Wind wind farm.^[8]
• 1 June 2011 – The sale of Meridian Energy's Tekapo A and Tekapo B hydroelectric power stations to Genesis Energy took effect. The sale was part of a package of government reforms aimed at improving the electricity sector.^[9]

• 30 September 2013 – 49 percent of shares in the company officially offered for sale at between $1.50 and $1.80^[10]

Power stations

Hydro

Wind

Manapouri

Benmore

Aviemore

Ohau A

Ohau B

Ohau C

Waitaki

Te Apiti

Te Uku

West Wind

White Hill

Location of power stations owned and operated by Meridian Energy in New Zealand.

Meridian Energy owns and operates seven hydroelectric power stations in the South Island – six on the Waitaki River and at Manapouri. It also owns and operates seven wind farms in New Zealand and Australia, and a single turbine in Brooklyn, Wellington. In total, Meridian has a total installed capacity of 2,754 MW in New Zealand and 201 MW overseas.

Carbon footprint

In 2006, Greenpeace judged Meridian as the only "green" electricity company in New Zealand.^[22] In 2007, Meridian announced that it had received CarboNZero certification from Landcare Research confirming that the generation and retailing of its electricity was carbon neutral.^[23][24]

In 2008, Meridian issued and sold the first carbon credits issued and sold under the JI program of the Kyoto Protocol.

In June 2008, National's Climate Change spokesman Nick Smith complained to the Commerce Commission that Meridian's claim of carbon neutrality in its advertising was misleading as Smith considered that Meridian had to buy thermally generated power during dry years to supply its customers. A spokesman for Meridian said they stood by the validity of the certification of their carbon-neutral status.^[25] In July 2009, the Commerce Commission concluded that Meridian's statements of carbon neutrality were not misleading.^[26]

Subsidiaries

• Damwatch Services Limited, consultancy specialising in dam engineering, safety and surveillance.
• Powershop, an electricity retail broker

See also

• Electricity sector in New Zealand
• New Zealand Electricity Market
• Project Crimson, a conservation programme sponsored by Meridian Energy
• KidsCan, a charity sponsored by Meridian Energy
• Facilities Management Association of New Zealand, an organization in part sponsored by Meridian Energy

References

External links

• Official website