Fast-track panel gives initial green light for Meridian to access more water at Pūkaki
Friday, 5 June 2026
It was shot down just weeks ago by Energy Minister Simeon Brown, but Meridian Energy’s desire to get access to about $80 million worth of extra water for power generation at Lake Pukaki over the next three years has been given draft approval by a fast-track panel.
The decision is just a draft, not a final decision, which is due by July 3. But it does give a provisional green light to the company’s plan proposing the easing of access restrictions on Lake Pūkaki hydro storage for a three-year period.
In addition to the contingent storage access, the Fast-track panel’s draft decision today also grants Meridian permission to permanently install rock armouring at Pūkaki Dam to ensure its resilience to wave erosion when operating the lake at lower levels.
Read more:
Simeon Brown asks fast-track panel to reject Meridian’s bid for extra water
Meridian vs Transpower: The battle over Lake Pukaki’s ‘contingent’ water and power prices
Meridian sought approval under the Fast-track Approvals Act to allow access to water stored between 518 and 513 metres above sea level, prior to the point where Transpower estimates there is a 4% risk of electricity shortage.
Meridian acknowledged the draft decision raised concerns regarding eased access to contingent storage if the plan went ahead.
“Given these concerns and the positive hydro storage outlook for Winter 2026, Meridian proposes, if the draft decision is confirmed, to continue for the rest of 2026 to treat half of the five metres of contingent storage as only accessible when there is a heightened risk to security of supply,” it said.
This appears to also acknowledge the concerns voiced just a few weeks ago by Minister Brown, who wrote to the fast-track expert panel considering Meridian’s application, making it clear he did not support the application in its current form.
“If access is provided to water currently held as contingent storage, and this storage is drawn down, it would reduce the volume reserved for rare but critical periods of system stress, and may also affect incentives for the sector to invest in alternative sources of firm or stored energy,” he said.
Both fellow gentailer Genesis and electricity system operator Transpower had voiced opposition to the plan.
Genesis was concerned about a possible knock-on effect on one of its power stations on the interconnected Lake Tekapo scheme, while Transpower had argued the so-called “contingent” water should only be released with its permission, during an energy crunch.
Transpower argued permanently changing water rights could provide “short-term relief” but have longer-term consequences.
“If we use our contingent hydro storage faster, or earlier, than necessary and it doesn’t rain, we can run out of energy very quickly with our relatively small hydro storage reservoirs,” said Transpower operations manager Chantelle Bramley.
The Electricity Authority turned heads by backing Meridian’s application and siding against Transpower’s advice, because it views the plan as a pragmatic way to manage energy shortages.
Meridian’s plan for the extra water would be enough to allow it to generate 545 gigawatt-hours of electricity, or about $80 million worth of power at current average wholesale prices — replenished each time the lake refilled from its low, and free of cost to Meridian.
The extra profits Meridian could expect to earn from the extra water it was seeking at Pukaki would be in the region of $12m to $15m a year, the company has estimated.
In an opinion column written late last year, The Post’s energy reporter Tom Pullar-Strecker said accommodating Meridian’s wishes would mean the Government giving away what is effectively electricity in liquid form to the country’s largest power firm, for it to on-sell to customers, with no conditions attached.