Summarised by Centrist
New Zealand’s energy sector is scrambling after last year’s power crisis, and Meridian Energy’s CFO Mike Roan is questioning why 20% of the country’s hydro storage was kept off-limits during the shortage.
In an interview with Mike Hosking, Roan called it a “no-brainer” to tap into this reserve, yet Transpower failed to do so—even as electricity prices spiked to $800 per megawatt-hour.
The sector is now dusting off decade-old contingency plans, as the country grapples with rising electricity costs and unreliable gas supplies. Roan noted that last year’s energy crisis exposed deep vulnerabilities, particularly around New Zealand’s dependence on gas as a “transition fuel.”
With shortages driving up costs, he argued that unlocking unused hydro storage could have helped stabilise the market. “We think it’ll bring electricity prices down and deal with the fact that we’ve got some challenges in the gas industry,” Roan said.
Hosking was blunt, calling the situation a scandal. “If we’ve got all that water and all you need is access, how hard can it be?” he asked.
