2021 Investor Day Presentation slide image

2021 Investor Day Presentation

The best source of future dry year flexibility The scale and pace of change required to move the NZ power system to 100% renewable energy is significant Changes expected in wholesale market outcomes and performance will be dramatic at times: ā˜ Mean modelled prices ~$80/MWh in most scenarios, but sufficient to generate a return on investment Weekly price volatility - especially in winter - is significantly higher than seen today (4-5x) Storage levels are held higher, creating a buffer against deficits in renewable fuel Expected carbon emissions are low in all cases: but slightly higher for coal and gas solutions Expected shortage is greater than today's market but manageable Significant renewable energy spill (wind, geothermal, solar) adds to the hydro spill seen in today's market There is no single solution to future dry-year flexibility that produces a desirable outcome in all situations Of the solutions explored: flexible demand response solutions - especially if it can manage both dry-years and intermittency; and a gas-turbine based solution - if upstream flexibility can be delivered; can achieve a balanced compromise of power system outcomes across a range of metrics All dry-year solutions have the potential to help solve much of the NZ dry-year issue. Any given solution does not need to solve it in its entirety, nor be mutually exclusive with other complementary future solutions Meridian. 11 MAY 2021 2021 INVESTOR DAY PRESENTATION | 32
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