2021 Investor Day Presentation

Annual system costs by 2030 Over the decade, the challenge of meeting the generation needs of a power system moving towards 99%-100% RE are significant, regardless of the dry-year solution pursued: 13-15TWh of new generation, including roof-top PV New capital requirements are broadly in line with energy needs - similar between scenarios $9.5-10B (including $1.9B of roof-top PV) Additional costs are likely for new flexibility: For example: H₂ = $2.5B; Onslow = $4B; gas flexibility = $0.5B; Pukaki high dam = $2.5B (all estimates) Depending on how costs are socialised, dry-year load response, reserve coal, or gas turbines could all look significantly cheaper System cost is not the only metric for the Government (or regulators) to consider: carbon, security, volatility, and investment/market stability are all important system costs per year [$M] $2,000 $1,500 $1,000 $500 S- Annual NZ System Costs Southland Stimulation & System Flexibility: all weeks, all hydrologies Shortage Emergency Dem Res Capital Annuity Direct Tx Carbon Thermal Fuel IOM TOTAL (mean) .......+flex capital Source: Meridian A tight range of system costs is seen between quite different solutions to dry-year flexibility until the unknown costs of flexibility are considered Meridian. 11 MAY 2021 | 2021 INVESTOR DAY PRESENTATION 31

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