Meridian to build Ruakaka Battery Energy Storage System

Release






Meridian Energy Limited (ARBN 151 800 396) A company incorporated in New Zealand
287-293 Durham Street North, Christchurch 8013

meridianenergy.co.nz
Stock Exchange Listings NZX (MEL) ASX (MEZ)
Meridian to build Ruakākā Battery Energy Storage System
15 December 2022
Meridian Energy will begin construction of the Ruakākā Battery Energy Storage System (BESS)
in the first quarter of 2023. The project will construct New Zealand’s first large-scale grid
battery storage system, providing Meridian with a versatile North Island asset, situated
south of Whangārei.
Meridian Energy Chief Executive Neal Barclay says the company’s approach to a battery
storage system has evolved during its development phase.
“A North Island battery was originally part of our response package to Rio Tinto’s
termination of its electricity contract for the Tiwai Point Aluminium Smelter. As we
developed the opportunity, the BESS business case proved to be an economic investment
irrespective of Rio Tinto’s future in New Zealand.”
Mr Barclay says the BESS offers multiple new revenue streams, providing the ability to load
shift between price periods and to participate in the North Island reserve electricity market.
“As intermittent renewable generation increases in this country, the Ruakākā Battery Energy
Storage System will help manage supply fluctuations through a low carbon footprint,
reducing this country’s reliance on fossil fuels,” Mr Barclay says.
“We have a bold vision for Ruakākā, with a grid-scale solar farm planned to further speed up
our transition to a productive low carbon economy. The shared infrastructure provided by
the BESS will significantly improve the economics of the future solar farm,” adds Mr Barclay.
Global battery specialist Saft will provide integrated battery supply, installation,
commissioning and operational services for the Ruakākā BESS. Meridian Energy will manage
a multi contract delivery approach, with project completion expected in the second half of
2024.

ENDS
Neal Barclay
Chief Executive
Meridian Energy Limited

For investor relations queries, please contact:
Owen Hackston
Investor Relations Manager
021 246 4772
For media queries, please contact:
Rheilli Uluilelata
External Communications Advisor
022 589 1052

RUAKĀKĀBATTERY ENERGY STORAGE SYSTEM
15 DECEMBER 2022

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Today’s announcement
15 DECEMBER 2022
RUAKĀKĀ BESS INVESTMENT DECISION
The BESS project is stage one of a two-stage project that
anticipates the future construction of a 130MW solar farm
§Meridian has committed to construction
of the RuakākāBattery Energy Storage
System (BESS)
§NPV positive project that significantly
improves the investment economics of
the stage two solar project
§Strategic location immediately adjacent
to Transpower’s 220kV Bream Bay
substation
§Direct revenue from electricity price
arbitrage and reserve market
participation
§Reduced price separation benefit to
Meridian’s portfolio

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Project overview
15 DECEMBER 2022
RUAKĀKĀ BESS INVESTMENT DECISION
SH5 egress
§BESS site is a 30 minute drive from Whangārei,
located adjacent to Transpower’s 220kV Bream Bay
substation, Channel Infrastructure’s fuel import
terminal and Northport
§The balance of the land, along with additional
nearby land, will be used for development of a
130MW solar farm
§A ‘multi contract’ approach will be used to deliver
the project
§Bulk of the project capital cost is the battery
contract with Saft
§Balance of plant delivers the civil and electrical
infrastructure for the battery and provides the
export path via a connection to Transpower
§Balance of plant also includes operations,
maintenance and switch room buildings

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Project overview
15 DECEMBER 2022
RUAKĀKĀ BESS INVESTMENT DECISION
SH5 egress
Meridian Civil Works
Including: site access, drainage, pad, BESS foundations, fencing, firewater
§Four major contracts will be running in parallel: Meridian's civil and electrical works, Saft BESS
contract and Transpower's grid connection works
Transpower Works Agreement
33kV switchgear
Meridian Electrical Works
33kV switchgear
Bream Bay substation
Saft BESS Contract
Saft battery container
Power Electronics inverter
Power Electronics
transformer and switchgear
power
flow
SCADA control, comms
Transpower
connection

100MW peak and 200MWh (2 hours) energy storage
3hectare project site (land purchased in 2021)
Project completion in second half of 2024
Battery Energy Storage Solution (integrated supply, install, commission, operational services)
Shared infrastructure (switchgear, buildings) will reduce stage two solar project unit cost by ~$20\MWh
$186m capital investment, including contingency
$20m -$30m EBITDAF p.a. (average, low -high scenarios)
$6moperating costs p.a. mainly transmission costs (connection, benefit-based investment and residual charges)
Up to $35mrevenue p.a. from price arbitrage, reserve market participation, indirect revenue
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Project specifications
15 DECEMBER 2022
RUAKĀKĀBESS INVESTMENT DECISION
§Arbitrage means buying power at low
price periods and selling at high price
periods.This form of ‘load shifting’ will
secure revenue, as well as providing
support to the grid at peak times
§As the volume of intermittent generation
grows, arbitrage will increasingly include
operating in response to fluctuating
output from wind and solar
§6 second fast reserve (FIR) and 60 second
sustained reserve (SIR) are procured by
island and are co-optimisednationwide
§A BESS will operate and secure revenue
from both the FIR and SIR markets in the
North Island simultaneously alongside any
arbitrage activity
§Increasing supply in the North Island
reserve markets will increase HVDC
transfers, with a corresponding reduction
in North Island thermal generation
§Reduced separation between North Island
and South Island prices will deliver energy
margin benefits

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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 addition, neither the company nor
any of its directors, employees, shareholders nor any other person
shall have liability whatsoever to any person for any loss (including,
without limitation, arising from any fault or negligence) arising from
this presentation or any information supplied in connection with it.
This presentation may contain forward-looking statements and
projections. These reflect Meridian’s current expectations, based on
what it thinks are reasonable assumptions. Meridian gives no
warranty or representation as to its future financial performance or
any future matter. Except as required by law or NZX or ASX listing
rules, Meridian is not obliged to update this presentation after its
release, even if things change materially.
This presentation does not constitute financial advice. Further, this
presentation is not and should not be construed as an offer to sell or
a solicitation of an offer to buy Meridian Energy securities and may
not be relied upon in connection with any purchase of Meridian
Energy securities.
This presentation contains a number of non-GAAP financial
measures, including Energy Margin, EBITDAF, Underlying NPAT and
gearing. Because they are not defined by GAAP or IFRS, Meridian's
calculation of these measures may differ from similarly titled
measures presented by other companies and they should not be
considered in isolation from, or construed as an alternative to, other
financial measures determined in accordance with GAAP. Although
Meridian believes they provide useful information in measuring the
financial performance and condition of Meridian's business, readers
are cautioned not to place undue reliance on these non-GAAP
financial measures.
The information contained in this presentation should be considered
in conjunction with the company’s financial statements, which are
available at:
www.meridianenergy.co.nz/investors
All currency amounts are in New Zealand dollars unless stated
otherwise.
15 DECEMBER 2022
RUAKĀKĀ BESS INVESTMENT DECISION