Meridian Energy Limited is a New Zealand electricity generation and electricity retailing company. The company is the country's largest electricity generator, providing for approximately one-third of New Zealand power needs (12,000 GWh).

In New Zealand the company owns and operates nine hydroelectic generating stations in the South Island. Eight on the Waitaki River and the country's largest hydroelectric station, Manapouri Power Station on Lake Manapouri. Meridian sells power to approximately 230,000 customers primarily located in the South Island

In Australia the company owns an operates several small hydro stations in Victoria and New South Wales through its subsidiary, Southern Hydro. It generates around 600GWh annually. Due to limited water Southern Hydro operates its plant only during periods of high market prices.

Merdian is actively developing new generation capacity. It has several wind farm projects in progress in both New Zealand and Australia. When completed, the Te Apiti wind farm will be New Zealand's largest. It is located on land north of the Manawatu Gorge in the North Island.

History

Meridian was formed from the breakup of the Electricity Corporation of New Zealand (ECNZ) in 1999 as a result of the reforms of the New Zealand Electricity Market and corporatised to become a state-owned enterprise with its own board of directors and Ministerial shareholders. The shareholders are the Minister of Finance and the Minister of State Owned Enterprises.

2001, Meridian purchased five mini hydro power stations in Australia. These stations are associated with dams used primarily for irrigation, with a 62 MW total generating capacity.

September 2001, Meridian purchased the South Island customer base of, at the time New Zealand's largest electricity retailer, Natural Gas Corporation (NGC). The purchase came toward the end of an exceptionally dry autumn. Low hydro levels had driven the wholesale market spot prices to very high levels. NGC had purchased the customer base when Canada's Trans Alta quit New Zealand. NGC rebranded itself OnEnergy to escape the poor Trans Alta brand reputation. OnEnergy found itself with insufficient generation to stand the high winter market prices, and had made the critical mistake of not purchasing any Hedge contracts. It attempted to raise its retail prices, but its customers then flocked to other retailers. Finally NGC was forced to quit the retail sector after huge losses, selling its customer base to two of the Government's companies, Meridian and Genesis Power Limited. At that point the New Zealand Electricity market became further vertically integrated, and many believed competition in the retail electricity market was adversely affected.

2003, Meridian extended its operations in Australia with the purchase of Southern Hydro, increasing its generating capacity by 540 MW.

Winter 2003, Low hydro inflows and storage levels again resulted in exceptional wholesale market spot prices. As a consequence, retailers Trustpower and Freshstart abandoned market areas where they had no generation. This strengthened Meridian's dominance of the South Island customer base.

29 March 2004, Merdian cancelled Project Aqua,[1] a controversial 524 MW power scheme of six dams and a man-made canal on the Lower Waitaki River in north Otago. The scheme represented the last opportunity for large-scale hydroelectric development in New Zealand. The failure cost Meridian NZ $38.7 million. Meridian stopped the scheme because of uncertainty over rights to use the water, growing costs, and the difficulties and uncertainties with obtaining consents under the New Zealand Government's Resource Management Act (RMA).

In July 2004, Meridian announced an independent audit of the abandoned scheme will be undertaken.

External link

• Meridian Energy
• Southern Hydro
• Competition in NZ Electricity