Blown a fuse: Projected falls in wholesale electricity prices likely to ground industry revenue
Hydro-electricity is New Zealand's main power source. In recent years, hydro generators have contended with unreliable rainfall levels weighing on output. This coincided with restricted gas supplies, forcing coal-fired generators to deliver more electricity and fill gaps in supply. The Russia-Ukraine conflict has also pushed up commodity prices - making it more expensive to run these coal-fired plants. These factors have compounded to inflate wholesale prices. Revenue is expected to balloon 9.3% over the past five years, with a 2.9% rise in 2022-23, to hit $4.0 billion. Despite volatile output, high wholesale prices have ensured solid profit margins for hydro generators.
Industry operators generate electricity through operating hydro-electric power plants. Operators that generate electricity through tidal energy are excluded from the industry.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry's key players and their market shares.
Table of Contents
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Genesis Energy Limited
- Contact Energy Limited
- Mercury NZ Limited
- Meridian Energy Limited
- Manawa Energy Limited
Methodology
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