Meridian And NZAS Agree To Reduce Power Use
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Meridian Energy Limited and New Zealand Aluminium Smelters Limited (NZAS) have reached an agreement to reduce power demand by 50MW per hour for the 2025 winter season. This measure is intended to help manage electricity supply during colder months.
The agreed reduction will be in place from 10 March to 31 August 2025, with an 86-day ramp-up period following the agreement. During this time, the contract quantity under the Core Agreement between the two companies will be adjusted accordingly.
Additionally, both parties have agreed that Meridian will have the option to request further demand reductions in the future. These include Option 3 (100MW) and Option 4 (185MW), which could take effect from 12 April 2026.
This agreement also alters the remaining portion of Option 4, which Meridian exercised on 21 July 2024. The original plan was for a gradual ramp-up of reductions, expected to complete by 12 April 2025. However, NZAS has maintained and is expected to continue a 25MW reduction under this plan between 17 February and 2 March 2025.
Meridian Chief Executive Neal Barclay acknowledged the importance of this agreement, stating that while there is still time for rainfall before winter, managing water resources wisely is essential. He expressed appreciation for NZAS's flexibility and willingness to collaborate in the interest of New Zealand's energy security.