Quarterly Operational Update

Market summary
Low national inflows during the quarter contributed to elevated spot electricity prices averaging
$265/MWh inௗAuckland.ௗFull year national inflows were 23
rd
percentile with spot prices in Auckland
averaging $187/MWh for the financial year. Forward prices remain high averaging $166/MWh in Auckland
forௗfinancial years 2025 to 2026. Gas supply uncertainty is reflected in elevated near-term forward prices.
Normalised national demand during the financial year was 0.9% higher than FY23.
Resilient portfolio
Despite 30
th
percentile inflows into the Waikato catchment during the financial year, hydro generation was
slightly higher than average at 4,096GWh but 21% lower than last year’s record hydro generation. The year
end lake level was 103GWh lower than average. Total generation was 8,780GWh (258GWh, 3% lower than
PCP). This reflects improved resilience in geothermal generation with 2,622GWh of generation for the
financial year(264GWh, 11% higher than PCP) and higher wind generation of 2,062GWh (591GWh, 40%
higher than PCP), supported by new wind generation from Turitea South and Kaiwera Downs stage 1 wind
farms.
Elevated prices a recurring thematic
Financial year Commercial & Industrial yields (physical and end-user CfDs) increased by $9/MWh (7%) to
$131/MWh versus PCP, reflecting repricing of contract renewals into the high electricity forward curve.
Mass Market yields also saw strong growth, up $9/MWh (6%) versus PCP. Gas supply constraints during the
quarter contributed to elevated gas purchase costs, increasing to $25/GJ ($13/GJ, 108% higher than PCP).
Construction underway at Kaiwera Downs wind farm stage 2
Kaiwera Downs stage 2 construction commenced in June with full generation expected by the end of CY26.
This brings Mercury’s total FY24 commitment to new renewables to over $700 million with the geothermal
expansion at Ngā Tamariki announced in Sep2023 .
GEOTHERMAL AND WIND
GENERATIONINCREASE
C&I ANDMASS MARKET
YIELDS INCREASE.
GAS YIELD SQUEEZED
NZASAGREEMENT
SUPPORTS PROJECT

20%
30%
19%
17%
3%
11%
20%
36%
19%
14%
4%
7%
18%
82%
19%
81%

⁰