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Meridian to spend up to $510m on Waitaki Power Station upgrade. Business Reporter · NZ Herald · 29 Sep, 2026 03:27 PM 4 mins to read New Zealand's biggest power generator, Meridian Energy, says it will invest $440-$510 million over the next 10 years on upgrading the historic, Great Depression-era Waitaki Power Station. NZX-listed Meridian said the revamp of the 92-year-old station would boost hydro generation and "set the asset up for another lifetime". The project Unlock all articles by subscribing to this international offer All-Access weekly. Herald Premium, Viva Premium & The Listener

Solar overtakes coal in New Zealand as Q2 generation surges 56% to record 242GWh. September 11, 2026 New Zealand's solar generation rose 56.2% year-on-year to a record 242GWh in Q2 2026, according to the latest New Zealand Energy Quarterly from the Ministry of Business, Innovation and Employment (MBIE). According to the government, the country generated more electricity from solar than coal over a rolling 12-month period for the first time on record. The Q2 2026 quarter, covering April to June and released on 10 September, was marked by renewable energy sources supplying 92% of New Zealand's electricity, the third consecutive quarter above 90% and the highest share recorded for a Q2 period. Total electricity generation rose 1.9% (207GWh) year-on-year to 11,163GWh, while renewable energy generation as a whole increased 11.4% (1,052GWh). Favourable hydro conditions drove much of that growth, with hydro generation up 14.7% (804GWh) to 6,283GWh following strong rainfall, while geothermal output reached a record 2,621GWh as new capacity came online. Wind generation held near record levels at 964GWh. That renewable energy has sharply squeezed fossil generation. Gas-fired generation fell 37.2% year-on-year, and coal-fired generation fell 74.3%, contributing to a 95% reduction in coal use for electricity generation specifically. Coal imports fell by 94% to their lowest level since December 2011, while coal consumption reached a record low, aided by continued fuel switching to biomass in the food processing sector. Wholesale electricity prices fell by 66% compared with the same quarter last year, though residential electricity costs rose by 10%, driven mainly by higher network charges to support infrastructure investment. Electricity consumption itself increased 3.0% (301GWh) to 10,211GWh, driven by higher irrigation demand during dry conditions and stronger industrial use. A utility-scale pipeline advancing on multiple fronts. Solar's record quarter and its milestone crossover with coal reflect a utility-scale pipeline that has accelerated markedly over the past two years. In July 2026, Harmony Energy New Zealand and Igneo Infrastructure Partners energised the 202MWp Tauhei solar plant near Te Aroha in the Waikato region, becoming the country's largest operational solar installation. The agrivoltaics site, which incorporates sheep grazing beneath its modules across 182 hectares of former dairy farmland, has contracted all output from its first ten years of operation to gentailer Meridian Energy. Tauhei's position as the country's largest plant is expected to be short-lived. Nova Energy and Meridian Energy are jointly developing the 400MW Te Rahui Solar Farm near Taupō, where construction crews installed the project's first modules in May 2026, with the 200MW first phase due to reach full capacity by mid-2027. Elsewhere, Lightsource bp and Contact Energy reached financial close in June 2026 on the 171MWdc Glorit solar plant north of Auckland, following resource consent that survived a High Court challenge from conservation group Forest and Bird over impacts on the endangered tara iti. The same joint venture is separately nearing completion of the 168MWdc Kōwhai Park plant at Christchurch Airport, after completing solar module installation there ahead of commercial operations expected later this year. That project activity traces back to New Zealand's 2024 dry-year energy crisis, when depleted hydro storage and declining gas supply drove wholesale prices sharply higher and exposed the risks of a generation mix historically dependent on weather-sensitive hydropower. MBIE's own quarterly chart data shows coal-fired generation had climbed steadily between 2016 and 2021 before beginning a sustained decline, while solar and wind have both risen steadily over the same period, a shift Q2 2026's figures now show crossing a symbolic threshold. Utility-scale progress has not been matched at the residential level, where uptake remains comparatively low. New Zealand's Ministry for Regulation published a review in July 2026 finding that only 3-4% of New Zealand households have solar installed, compared with more than 30% in Australia, attributing part of that gap to a fragmented approval process spanning up to eight layers of sign-off and five site visits from four different entities. The review recommended 15 changes it estimated could deliver between NZ$28 million (US$16.4 million) and NZ$50 million in net benefits over a decade, including faster distributor approval timeframes and the legalisation of small plug-in solar units.

Why are investors watching Meridian Energy after FY26 results? Key growth drivers revealed. 26 August 2026 02:08 PM NZST Summarize with AI You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to its research reports, in-depth technical and fundamental research. Learn more Highlights * Meridian Energy reported a strong FY26 recovery with EBITDAF rising to $1.05 billion. * Renewable development momentum continued with new solar and wind projects progressing. * Final Dividend increased to 16.10 cents per share, taking FY26 total dividends to 22.50 cents. Meridian Energy Limited (NZX:MEL) delivered a significant improvement in financial performance for the year ended 30 June 2026, supported by stronger energy margins, improved operating conditions and continued Investment in renewable generation. Operating cash flows increased to $810 million, while net profit after tax recovered to $130 million compared with a loss in FY25. EBITDAF increased to $1.05 billion, supported by higher energy margins and improved market conditions. The company continued to advance its renewable energy pipeline, including solar and wind developments, while strengthening customer initiatives and digital capabilities. Meridian also increased Shareholder returns through a higher annual dividend and maintained its focus on supporting New Zealand's transition towards a more renewable energy system. Financial Recovery Meridian Energy recorded a strong turnaround in FY26 following a challenging prior year impacted by drought conditions and significant spending on hedge and Demand response contracts. Operating cash flows increased to $810 million from $318 million in FY25, while net profit after tax improved to $130 million compared with a $452 million loss in the previous year. EBITDAF rose to $1.05 billion from $611 million, while underlying net profit increased to $308 million from $56 million. The improvement was supported by a rise in energy margin, which increased from $982 million to $1.47 billion during the year. The company declared a final ordinary dividend of 16.10 cents per share, bringing total FY26 Ordinary Dividends to 22.50 cents per share, representing a 7.1% increase compared with the previous year. Meridian also continued its Dividend reinvestment Plan at a 0% discount. Alongside shareholder returns, the company committed additional funding towards community initiatives, including extending its Energy Wellbeing Programme and supporting local decarbonisation projects. Renewable Expansion Meridian continued progressing its renewable energy strategy during FY26, with several major development milestones achieved. The company secured resource consent for the continued operation of the Waitaki Power Scheme for the next 35 years, supporting the long-term reliability of New Zealand's electricity system. The company currently has two major projects under construction, including the 130MW Ruakākā Solar Farm and the 200MW stage one Te Rahui Solar Farm, developed in Partnership with Nova. Meridian also secured consents for the 90MW Mt Munro Wind Farm and the 120MW Bunnythorpe Solar Farm. Beyond generation development, Meridian expanded its retail and digital capabilities through its Next Gen Retail operating model. By year-end, 175,820 retail and commercial customers had migrated to the Kraken platform. The company also continued expanding its electric vehicle charging network, adding 140 charge points during FY26 and reaching 519 charge points nationwide. Meridian remains focused on developing additional renewable generation and firming Assets to support energy security and affordability across New Zealand. Q1. How did Meridian Energy perform in FY26? A: Meridian reported stronger earnings, higher cash flows and a return to profitability during FY26. Q2. What was Meridian Energy's FY26 dividend? A: Meridian declared total ordinary dividends of 22.50 cents per share for FY26. Q3. What renewable projects is Meridian developing? A: Meridian is progressing solar and wind projects, including Ruakākā Solar Farm, Te Rahui Solar Farm, Mt Munro Wind Farm and Bunnythorpe Solar Farm. Download Free Report - Explore 3 Stock Ideas & Industry Insights Unlock 3 stock ideas and key industry insights in its free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice. All investments involve risk - consider independent advice before making any investment decisions. Disclaimer: