Meridian to upgrade Waitaki Power Station

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Meridian to upgrade Waitaki Power Station

30 September 2026

Meridian Energy will invest between $440 million and $510 million over the next ten years upgrading
its 92-year-old Waitaki Power Station, boosting hydro generation and setting the asset up for another
lifetime. Scheduled for completion by 2036, the project will increase the station’s available capacity
from 105MW to 120MW, replacing all seven turbines, generators and supporting balance-of-plant
systems, together with the station’s 21 headgates and associated equipment.
The investment will be treated as a combination of growth capital expenditure (15% of the investment)
and a new classification, repowering capital expenditure (85% of the investment). Repowering capital
expenditure, as it is incurred, will be excluded from the calculation of operating free cash flow under
Meridian’s Dividend Policy. It will, however, be added back into operating free cash flow calculations
proportionately over the expected useful life of the repowered station, currently estimated at 50 years.
Meridian’s revised total capital expenditure guidance for the 2027 financial year is unchanged at $370
million to $410 million. Stay in business capital expenditure is
expected to be between $110 million
and $120 million, growth capital expenditure expected to be between $220 million and $250 million
and repowering capital expenditure of $40 million.
Waitaki Power Station currently generates enough electricity for about 51,000 average homes. It was
constructed with manual labour as a ‘make-work’ project during the 1930 s Depression. The station
started generating electricity in 1935, with two 15MW generators able to meet almost half of the South
Island’s electric ity need s at the time . Three more generators were installed between 1940 and 1949,
bringing generation capacity up to 75MW. The remaining two units were constructed between 1952
and 1954, with the powerhouse extended to accommodate them.

“Waitaki Power Station is an important par t of our country’s social and energy history. This project will
breathe new life into this iconic asset, powering on the legacy of those who built it for decades to
come. As well as increasing generation output, this upgrade will improve seismic resilience,
operational reliability and long-term station performance,” sa ys Meridian Chief Executive Mike Roan.

“Hydro generation has an even more vital role to pla y in our energ y system as New Zealand
transitions away from thermal fuels and increases intermittent wind and solar generation. More
system firming is essential and, a s part of the Waitaki Power Scheme, the station benefits from the
reliabil ity of New Zealand’s biggest battery, Lake Pūkaki.”

The hydro station will continue to operate during project wor ks with unit outages carefully planned to
minimise impact on generation.
Meridian has appointed two main contractors. International hydro generation expert Voith Hydro will
supply the turbines and generators, with New Zealand-owned Gentec Solutions covering the

m e r i d i a n e n e r g y . c o . n z
PG 2

headgates and associated works. The project complements a broader programme of work to improve
availability and flexible generation output of Meridian’s generation assets, including others on the
Waitaki Power Scheme. Meridian has increased the operating capacity of its existing hydro assets by
75MW in the last two years and it expects more in the coming years. These incremental
improvements are important additions to an electricity system that is integrating increasing volumes of
intermittent renewable generation.

ENDS


Approved for release by:
Jason Woolley
General Counsel and Company Secretary
Meridian Energy Limited
For investor relations queries, please contact:
Owen Hackston
Investor Relations Manager
021 246 4772
For media queries, please contact:
Lachlan Forsyth
Media & Content Manager
021 243 5342

7 cm
Waitaki Upgrade Project
Investment Decision
30 SEPTEMBER 2026

30 SEPTEMBER 2026WAITAKI UPGRADE PROJECT
PAGE 2
Construction of the Waitaki hydro power station originally began in the 1930’s.

Today’s announcement
Meridian has committed to upgrading the 92-year-old
Waitaki hydro power station.
The investment will deliver a full mechanical and electrical
upgrade of all seven generating units.
$440M to $510M (nominal) investment over a 10-year
period, delivering a 15%-20% IRR.
The investment will be treated as a combination of growth
capital expenditure (15% of the investment) and a new
classification, repowering capital expenditure (85% of the
investment).
Repowering capital expenditure, as it is incurred, will be
excluded from the calculation of operating free cash flow
under Meridian’s Dividend Policy. It will, however, be added
back into operating free cash flow calculations
proportionately over the expected useful life of the
repowered station, currently estimated at 50 years.
30 SEPTEMBER 2026WAITAKI UPGRADE PROJECT
PAGE 3
Waitaki hydro power station began generating electricity in 1935, with two 15-megawatt
generators operating –enough to meet almost half of the South Island’s electricity needs at
that time.

Project overview
The investment will deliver a full mechanical and electrical
upgrade of all seven generating units, the connection assets,
and balance of plant.
The project represents Meridian’s first full mechanical and
electrical refurbishment of a hydro power station.
The upgrade will substantially extend the operational life of
the station, improve operational flexibility and resilience, and
increase available station capacity by 15MW.
The upgrade provides higher financial returns than further
deferral or decommissioning alternatives.
andselected as key partners.
30 SEPTEMBER 2026WAITAKI UPGRADE PROJECT
PAGE 4
Waitaki hydro power station currentlygeneratesenough electricity for about 51,000 average
New Zealand homes.

0
20
40
60
80
100
2027202820292030203120322033203420352036
$M
Financial Year ended 30 June
Waitaki Upgrade capital expenditure (indicative timing)
Project specifications
$440M-$510M(nominal) capital investment over 10years.
Capex will be treated as growthcapex, not included in stay in
business capex or operating free cashflow under Meridian’s Dividend
Policy.
The investment will be treated as a combination of growth capital
expenditure (15% of the investment) and a new classification,
repoweringcapital expenditure (85% of the investment).
Repowering capital expenditure, as it is incurred, will be excluded
from the calculation of operating free cash flow under Meridian’s
Dividend Policy. It will, however, be added backinto operating free
cash flow calculations proportionately over the expected useful life of
the repowered station, currently estimated at 50 years.
15MWincrease in available station capacity.
15%-20%IRR.
10,000tCO₂eof emissions for the maincontract works.
Sequential unit upgrades to minimise station outages.
30 SEPTEMBER 2026WAITAKI UPGRADE PROJECT
PAGE 5
Source: Meridian

Disclaimer
30 SEPTEMBER 2026WAITAKI UPGRADE PROJECT
PAGE 6
The information in this presentation was prepared by Meridian Energy with due care and attention. However, the information issupplied in summary
form and is therefore not necessarily complete, and no representation is made as to the accuracy, completeness or reliabilityofthe 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 informationsupplied 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 changematerially.
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.
The information contained in this presentation should be considered in conjunction with the company’s financial statements, which are included in
Meridian’s integrated report for the year ended 30 June 2026, available at:
www.meridianenergy.co.nz/about-us/investors
All currency amounts are in New Zealand dollars unless stated otherwise.