Quarterly Operational Update

FY25 HYDRO
GENERATION
FORECASTED TO
BE 3,400 GWH
LONG TERM
AGREEMENT
SIGNED WITH
FONTERRA
NZAS SUPPLY
AGREEMENT
TAKES EFFECT
Market summary
National hydrological inflows were the lowest on record during the quarter, resulting in high spot
electricity prices averaging $225/MWh in Auckland. Forwardprices remain high at$205/MWh in Auckland
for financial years 2025 to 2027 as of 31
st
March 2025. Normalised national demand was 3.5% lower for
the quarter relative to PCP, mainly impactedbyirrigationand industrial demand response.
Record low Q3 Waikato catchment inflows and decreased wind sees lower generation output
Waikato catchment inflows were the lowest on record over the quarter which saw Q3 hydro generation
reduce to 710GWh (-295GWh, 29% lower than PCP). 3rd percentile inflows in the Waikato catchment
over the past nine months has resulted in 2,547GWh of hydro generation (-530GWh, 17% lower on PCP).
We are forecasting 3,400GWh of hydro generation for the full year, due to the continued dry conditions
since the start of the financial year.
Lower average wind speeds over thequarter saw 373GWh of wind generation (-144GWh, 28% lower than
PCP). Geothermal generation was 35GWh lower than PCP at 629GWh driven in part by a planned
maintenance outage at the NgāTamariki generation site.
Long term agreement signed with Fonterra
Mercury has agreed a long-term contract with Fonterra to support the electrification of their Edgecumbe
and Waitoa operations. The supply agreements extend for ten years for each site, with Waitoa
commencing from Aug-25 and Edgecumbe from Jul-26. This represents total demand of ~260 GWh per
year, weighted towards summer quarters.
NZAS supply agreement commencedthis quarter
The longterm supply agreement with New Zealand Aluminium Smelters has taken effect from Jan-25.
This end user contract for difference agreement is initially for 50MW, stepping up to 75MW in 2027.

18%
33%
17%
15%
2%
15%
22%
33%
21%
13%
2%
9%
17%
83%
16%
84%

⁰