“While the smelter has had to make a difficult decision to reduce aluminium production, we are pleased to be able to offer this additional support for New Zealand’s power grid at this time of energy constraint,” the company said.
“As a large electricity user, we recognise the responsibility we have in contributing towards keeping the lights on across New Zealand when needed.
“We have taken off 185MW already, which we achieved nine days earlier than planned.
“That is having a positive impact, and this additional 20MW will further assist the country’s national grid,” NZAS external affairs director Simon King said.
King said 20MW was about the equivalent of the electricity needed to power all the homes in the city of Napier.
Meridian chief executive Neal Barclay said the company appreciated the additional support from NZAS.
“New Zealand is currently in a period of high spot prices and tight electricity supply,” he said.
“Being able to call on our groundbreaking demand response agreement has already provided important relief, and NZAS has once again stepped up to sign an agreement that will provide further security of supply,” Barclay said.
Wholesale power prices have come back sharply after peaking at over $800/megawatt-hour this month, but they remain elevated near $450/MWh.
Last week, Methanex, the country’s largest natural gas buyer, temporarily mothballed its remaining operations at Motunui in the midst of an acute gas supply shortage.
The Vancouver-based company, with plants in Taranaki, manufactures methanol from natural gas and has agreed to sell its contracted gas supply to electricity providers Contact Energy and Genesis Energy.
The gas released by Methanex will result in the closure of its own plants, where production was already heavily curtailed.
