Harapaki wind farm project update

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Harapaki wind farm project update

24 August 2022
Meridian Energy is today providing an update on construction progress of its Harapaki wind farm in
Hawkes Bay, highlighting an expected $53m (13%) increase in costs. This will increase total project
capital costs from the original $395 million announced in February 2021 to $448 million.
The original first power milestone of June 2023 and full power by June 2024 both remain on
schedule in the project timeline, while the overall wind farm capacity of 176 MW is unchanged.
Meridian Energy Chief Executive Neal Barclay says multiple risks have eventuated since bulk
earthworks started in September 2021 and their magnitude exceeded cost expectations.
“The first construction season at Harapaki has been one of the wettest on record, with more than a
metre of rain on site in the last 3 months of 2021, while the first quarter of 2022 saw record rainfall
totals and damage inflicted by Cyclone Dovi. We have enjoyed more favourable weather conditions
since April 2022, which has helped maintain our overall programme, however that has required
additional civil crews”.
Mr Barclay says the combined impacts of the COVID pandemic, inflationary pressures and resource
constraints will impact the project’s overall costs. “The increase in inflationary pressures as well as
poor weather and COVID have combined to deliver an unavoidable impact on our project. To
maintain the project timeline, the team at Harapaki has also had to come up with innovative roading
design, which adds cost but mitigates future risk and I acknowledge them and our wider contractor
workforce in overcoming real adversity.”
“Harapaki’s economics remain very sound, and the renewable development outlook in New Zealand
has been made even more compelling by the Government’s Emissions Reduction Plan released last
month,” Mr Barclay says.

ENDS
Neal Barclay
Chief Executive
Meridian Energy Limited

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Owen Hackston
Investor Relations Manager
021 246 4772
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022 589 1052

HarapakiWind Farm
Project Update
24 AUGUST 2022

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HARAPAKI WND FARM PROJECT UPDATE24 AUGUST 2022
Project overviewKey suppliers
SH5 egress
Located within the Hastings
District, approximately 50km
drive from Port Napier
Extending over 9km of the
MaungaharuruRange, covering
1,235 hectares
Elevation ranges from 730m at
the State Highway 5 entrance,
up to 1,100m at the highest
points
Transpower’s 220kV Whirinakito
Wairakei circuit passes across
the corner of the site
Meridian project delivery (not
EPC)
Supply, installation and maintenance
of 41 x 4.3MW direct drive wind
turbines
Construction of all roads, turbine
foundations and crane hardstands
Joint Venture
Supply, installation and commissioning
of substation and 220kV grid
connection
Electrical services for substation, cable
jointing and 33kV switchgear
installation
Supply, install and commissioning of
220/33kV transformers
Supply of 33kV reticulation cable

Today’s announcement
$53 million (13%) increase in total project capital costs from
the original $395 million announced in February 2021 to
$448million
Original first power milestone of mid 2023 and full power by
mid 2024 both remain on schedule
Wind farm capacity of 176 MW is unchanged
Additionalcivil costs to maintain overall programme against
the impact of very wet spring and summer conditions
COVIDimpacts of nationwide lockdown, prolonged Auckland
lockdown, workforce demarcations, ongoing infections
I
ncreasesin global material, labour, shipping costs, and
constraints across supply chains all mean an unavoidable
impact on the project
Revised roading design to address challengingsite geology,
improving resilience and site access
H
igher limestone extraction and processing emissions offset
by lower cement production/transport
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HARAPAKI WND FARM PROJECT UPDATE24 AUGUST 2022
Civil Works, 60%
Inflation (incl. sea
freight), 31%
Erosion Repairs and Resilience, 4%
Electrical Works, 4%
Project Management, 1%
$53M Capital Cost Increase

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Project update
HARAPAKI WND FARM PROJECT UPDATE24 AUGUST 2022
Schedule
On track
Mitigations put in place to
adapt to delays from COVID
lockdowns
Alterations made to pavement
design to allow working through
wetter conditions
Extra crews brought in to
maintain programme
Cost
13% increase, from:
COVID enforced delays
Record high rainfall
Inflation lifting escalation
amounts
Tight NZ labourconstruction
market
Global supply chain constraints
Capability
On track
Use of multi contract approach
with active management has
allowed the application of
mitigations
All contracts set at project
announcement protected most
overseas procurement from
commodity price rises
Holding expertise through detailed
design and construction allows
ability to effect change

5
Harapakikey project metrics
HARAPAKI WND FARM PROJECT UPDATE24 AUGUST 2022
February 2021August 2022Impact and notes
Generation capacity176MW176MW
◼
unchanged
Expected annual output542 GWh542 GWh
◼
unchanged
Capacity factor35%35%
◼
unchanged
Capital project costs$395M
$2.24M/MW
$448M
$2.54M/MW
◼
13% increase in costs
Expected first power datemid 2023mid 2023
◼
on schedule
Expected full power datemid 2024mid 2024
◼
on schedule
ASX 2024 Otahuhu Futures
(annual strip)
$122/MWh$172/MWh
◼
40% increase in annual average
prices

Disclaimer
The information in this presentation was prepared by Meridian Energy with
due care and attention. However, the information is supplied in summary
form and is therefore not necessarily complete, and no representation is
made as to the accuracy, completeness or reliability of the information. In
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reasonable assumptions. Meridian gives no warranty or representation as to
its future financial performance or any future matter. Except as required by
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presentation after its release, even if things change materially.
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including Energy Margin, EBITDAF, Underlying NPAT and gearing. Because
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The information contained in this presentation should be considered in
conjunction with the company’s financial statements, which are available at:
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All currency amounts are in New Zealand dollars unless stated otherwise.
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HARAPAKI WND FARM PROJECT UPDATE24 AUGUST 2022