CEN signs 10-year renewable energy agreement with Microsoft

Media Release – for immediate release
Thursday 25 May 2023

Contact signs 10-year renewable energy
agreement with Microsoft on new geothermal
power station at Te Huka

Contact Energy (Contact) and Microsoft signed a 10-year renewable attribute purchase agreement in
September 2022 that is supporting the development of new renewable energy capacity in Aotearoa
New Zealand, in line with Microsoft’s sustainability commitments.

The arrangement will see Contact provide Microsoft with all the renewable energy attributes
generated by Contact’s new 51.4MW Te Huka Unit 3 geothermal power station.

Ownership of renewable energy attributes is the global standard for electricity customers to show
they are using a renewable source. This is important for encouraging renewable electricity, since
electricity consumed on a shared grid cannot be traced back to a specific power station. This
contract supported Contact’s investment decision to begin construction of the new renewable
electricity generation facility at Te Huka.

Contact CEO, Mike Fuge, sees long-term commitments to the purchase of renewable energy
attributes as a way to bring a new generation of renewables online faster while directly connecting a
company’s environmental aspirations with physical solutions.

“Further development at Te Huka has always been on the cards. By entering this arrangement with
Microsoft, Te Huka Unit 3 got the backing it needed, providing further confidence to develop this
project. Microsoft's commitment shows what companies with energy intensive facilities can achieve
to support new renewable energy sources," Mr Fuge said.

“This type of agreement is a first for Contact and New Zealand. It reflects our commitment to enter
contracts for renewable energy certificates that are directly linked to the addition of new renewable
power generation. This is all part of delivering on our Contact26 strategy to build a better Aotearoa
New Zealand by leading the country’s decarbonisation.”

“Geothermal is unique in that it provides 24/7 non-weather dependent, reliable, and renewable
base load generation to the grid. This deal demonstrates the actions of two leading organisations
aligning to create better outcomes both here in Aotearoa and globally.”

Speaking about the agreement, Vanessa Sorenson, Managing Director Microsoft New Zealand, said
the organisation was proud of the agreement and the sustainability alignment it enabled.

“Microsoft has big plans in New Zealand. With the construction of the data center region, this
agreement aligns our New Zealand activities with Contact Energy’s presence and capabilities around

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geothermal in New Zealand and will further strengthen our transition to 100% renewable energy by
2025. It will also support Microsoft’s 100/100/0 commitment,” she said.

About Contact
Contact Energy is one of New Zealand’s largest energy retailer and generators. We generated 87% of
our electricity from renewable sources in the last financial year and have over 550,000 customers
with energy and broadband connections. Our vision is to help build a better Aotearoa New Zealand
by leading New Zealand’s decarbonisation.

Investor enquiries
Shelley Hollingsworth
Investor Relations and Strategy Manager
+64 27 227 2429
shelley.hollingsworth@contactenergy.co.nz

Media enquiries
Louise Wright
Head of Communications and Reputation
+64 21 840 313
louise.wright@contactenergy.co.nz