Genesis runs the coal and gas-fired Huntly Power Station, which backs up the hydro-dominated national power grid when lake levels are low.
Chief executive Malcolm Johns said last year showed Genesis could be flexible.
It was able to secure gas, at a cost, from methanol exporter Methanex to offset the gas shortage at the time, thereby supporting the national power grid.
Johns said the market had been incredibly dynamic.
“We have been clear that Genesis will no longer fund broad market back-up in either spare generation capacity or stored fuel.
“And we welcome the major players in the sector coming together to explore supporting thermal back-up for longer into the transition.”
Earlier this week, Genesis said it had beefed up its coal stockpile at its Huntly Power Station ahead of anticipated demand this winter.
This month, the big four power companies announced they had teamed up to look at ways of extending the life of Genesis Energy’s coal and gas-fired Rankine boilers at Huntly to improve security of supply.
One of Huntly’s Rankine units was scheduled to retire in 2026 and the other two in the early 2030s.
Genesis and its competitors Mercury, Meridian, and Contact have entered non-binding heads of agreement to investigate the potential for Huntly’s Rankines to play a key role in managing “dry-year risk”.
Genesis said stage one of its battery storage programme at Huntly — a 100 MW/200 MWh installation — is expected to commence construction by the end of the year, and was on track for commercial operations in the first quarter of 2027.
The company recently signed a terms sheet with Foresta to advance negotiations for a torrefied biomass supply at Huntly.
Genesis is also exploring opportunities to increase gas flexibility, including storage options.
Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.
