Meridian Energy will invest NZ$440–510m (approximately US$247–286m) over the next ten years to upgrade Waitaki Power Station in New Zealand, increasing its available capacity from 105MW to 120MW.
Scheduled for completion by 2036, the project will replace all seven turbines and generators, supporting balance-of-plant systems, and the station’s 21 headgates and associated equipment. The works will also improve seismic resilience, operational reliability and long-term performance.
Meridian has appointed Voith Hydro to supply the turbines and generators, while New Zealand-owned Gentec Solutions will undertake the headgate and associated works. The station will remain operational throughout the programme, with unit outages planned to minimise the impact on generation.
“Waitaki Power Station is an important part 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,” said Meridian Chief Executive Mike Roan.
“Hydro generation has an even more vital role to play in our energy system as New Zealand transitions away from thermal fuels and increases intermittent wind and solar generation. More system firming is essential and, as part of the Waitaki Power Scheme, the station benefits from the reliability of New Zealand’s biggest battery, Lake Pūkaki.”
The investment will be classified as 15% growth capital expenditure and 85% repowering capital expenditure, a new category introduced by Meridian. Under its Dividend Policy, repowering expenditure will be excluded from operating free cash flow calculations as it is incurred, then added back proportionately over the repowered station’s expected useful life, currently estimated at 50 years.
Meridian’s total capital expenditure guidance for the 2027 financial year remains unchanged at NZ$370–410m. This comprises NZ$110–120m in stay-in-business expenditure, NZ$220–250m in growth expenditure and NZ$40m in repowering expenditure.
Built using manual labour as a Depression-era employment project, Waitaki began generating electricity in 1935. Its first two 15MW units could meet almost half of the South Island’s electricity needs at the time. Three further units were installed between 1940 and 1949, increasing capacity to 75MW, followed by two additional units between 1952 and 1954.
The station currently generates enough electricity to supply around 51,000 average homes.
The upgrade forms part of Meridian’s wider programme to improve availability and flexible output across its generation assets, including other stations in the Waitaki Power Scheme. The company said it has increased the operating capacity of its existing hydro assets by 75MW over the past two years and expects further gains in the coming years.
