Meridian Energy Limited · NZX:MEL
Meridian Energy — UBS Utilities Conference 2014
12 slides from Meridian Energy's conference presentation, Jun 19, 2014
Slide 1: Meridian
meridian
Slide 2: Disclaimer
Disclaimer The information in this presentation was prepared by Meridian Energy with due care and attention. However, the information is supplied in summary form and is therefore not necessarily complete, and no representation is made as to the accuracy, completeness or reliability of the informatio
Slide 3: A reminder about Meridian
Areminder about Meridian = 100% renewable generation - wind and water = New Zealand’s largest hydro generator and largest wind farm operator " Producing approximately 30% of the country’s electricity TE UKU Capacity: 64 MW = Over 277,000 New Zealand customer connections through Meridian and Powersho
Slide 4: Since we listed
Since we listed 1,100 Australian We announce no 8,000 Inter island link Powershop announces changes to current Powershop upgrade completed, Australia RET review retail energy prices Australia _-US solar Listing allowing greater flows customers terms in near term customers _ Plant sale , 4d 1 4 _ [No
Slide 5: How we manage our New Zealand hydro risk
How we manage our New Zealand hydro risk = Vertical integration limits exposure to wholesale ILLUSTRATIVE BOW TIE Energy Margin spot price volatility ve Minimum s'-95 Pgs percentile spread = Seasonal portfolio positioning to minimise risk 1 (bow ties) ee = Typically results in a long generation posi
Slide 6: The economics of wind
The economics of wind = Underpinned by a higher wind resource than the world average = NZ generation capacity factors for wind are around 50% higher than the global average = Wind’s unit cost competes directly with other forms of generation development: geothermal and gas fired generation = Wind cur
Slide 7: Meridian in Australia
Meridian in Australia Renewable Energy Target (RET) RET is critical to future renewable generation development in Australia Significant weakening of the RET would impact our future generation activity in Australia Retail Momentum is building in our Powershop retail business in Victoria More states i
Slide 8: Update on the New Zealand Market
Update on The New Zealand Market UBS UTILITIES CONFERENCE 19 JUNE 2014 PGS
Slide 9: The New Zealand regulatory picture
The New Zealand regulatory picture Labour-Green Proposed Reforms - NZ Power = There are no more details from the Labour or Green parties since the original proposal in April 2013 = The current market structure does not need to be replaced. This is acknowledged by most academics = Political aims can
Slide 10: Our contract with the Tiwai smelter
Our contract with the Tiwai smelter New Zealand Aluminium Smelters (NZAS) = Meridian’s largest customer and New Zealand’s largest electricity user = We do not physically supply NZAS with electricity, rather the contract fixes the price NZAS pays for a set amount of electricity (572MW) = The current
Slide 11: Generation oversupply in the market
Generation oversupply in the market Demand NATIONAL DEMAND 3,800 = National electricity demand has declined slightly between 2010 and 2013 3,600 . . 3,400 = Demand in 2014 is flat compared to 2013 3,200 = Impacted by a longer term decline in electricity consumption in parts of the industrial sector
Slide 12: The hot retail market
The hot retail market = New Zealand is the most competitive electricity market in the world in terms of switching" = Average retail churn across all retailers is running close to 20% = This competitive pressure is reflected in our declining net average sales price = In our December 13 interim result