1 00:00:00,080 --> 00:00:02,600 Speaker 1: Back to our power grid. No shortage of news in 2 00:00:02,640 --> 00:00:05,160 Speaker 1: the past week or so because most optimistically it is 3 00:00:05,240 --> 00:00:07,120 Speaker 1: rained enough for things not to be die. That's winter, 4 00:00:07,160 --> 00:00:09,600 Speaker 1: so that's good. There's the battery project we told you 5 00:00:09,600 --> 00:00:12,600 Speaker 1: about it Huntley, the solar project we told you about yesterday. 6 00:00:12,640 --> 00:00:15,400 Speaker 1: And Tamuka Tai is back at full pace, so that's good. 7 00:00:15,440 --> 00:00:17,480 Speaker 1: And we've got a government review apparently coming in the 8 00:00:17,520 --> 00:00:19,239 Speaker 1: next couple of weeks on all of this now. Mike 9 00:00:19,280 --> 00:00:22,040 Speaker 1: Roun is the Meridian chief executive and he's with us. Mike, 10 00:00:22,120 --> 00:00:22,840 Speaker 1: very good morning to. 11 00:00:22,800 --> 00:00:25,720 Speaker 2: You, Morty. Mike, thanks having me on. 12 00:00:25,960 --> 00:00:29,320 Speaker 1: Excuse me, not at all Optimally, where do we need 13 00:00:29,360 --> 00:00:31,479 Speaker 1: to be? And as I sit here talking to you 14 00:00:31,520 --> 00:00:34,880 Speaker 1: this morning, how far short are we? 15 00:00:34,880 --> 00:00:37,240 Speaker 2: We're actually in good shape this winter. Mike. I don't 16 00:00:37,240 --> 00:00:41,239 Speaker 2: think people need to worry about having enough power. I 17 00:00:41,240 --> 00:00:43,040 Speaker 2: think there's a lot of work that's gone on in 18 00:00:43,080 --> 00:00:47,120 Speaker 2: the sector since last August where we ran into a 19 00:00:47,159 --> 00:00:51,840 Speaker 2: few challenges with drought and gas supply, and I think 20 00:00:51,840 --> 00:00:55,360 Speaker 2: those changes and you know, the adjustments that we've made 21 00:00:55,800 --> 00:00:58,440 Speaker 2: as we approach this winter have made a difference alongside 22 00:00:58,560 --> 00:00:59,760 Speaker 2: and it always helps when you've got to. 23 00:00:59,720 --> 00:01:04,040 Speaker 1: Go yes, exactly. More generally, though, bigger picture, where are 24 00:01:04,080 --> 00:01:06,200 Speaker 1: we and how far short of optimal are we? So 25 00:01:06,240 --> 00:01:07,920 Speaker 1: we never have to have these conversations ever. 26 00:01:08,040 --> 00:01:12,479 Speaker 2: Again, well, I think longer term, so if you kind 27 00:01:12,520 --> 00:01:15,240 Speaker 2: of jump for a few years, you know, we're deep 28 00:01:15,319 --> 00:01:18,680 Speaker 2: into investing in the sector so that we can overcome 29 00:01:19,440 --> 00:01:23,440 Speaker 2: the challenge that lost gas represents for the sector. So 30 00:01:23,440 --> 00:01:26,760 Speaker 2: I think long term, you know, we're in good shape. 31 00:01:27,440 --> 00:01:29,600 Speaker 2: I think the best I could say at the moment 32 00:01:29,720 --> 00:01:34,400 Speaker 2: is we're stabilizing the impact that that decline and gas 33 00:01:34,400 --> 00:01:37,440 Speaker 2: supply has on the electricity sector. I think it's probably 34 00:01:37,440 --> 00:01:40,560 Speaker 2: wider than just the impact on the electricity sector. So 35 00:01:40,600 --> 00:01:44,080 Speaker 2: I think the economy is trying to work out how 36 00:01:44,120 --> 00:01:47,039 Speaker 2: it navigates this period where you know, we don't have 37 00:01:47,040 --> 00:01:49,520 Speaker 2: as much gas available to us as we had hoped. 38 00:01:50,080 --> 00:01:53,200 Speaker 1: Was the gas a critically poor decision that gave you 39 00:01:53,280 --> 00:01:54,440 Speaker 1: a headache you didn't need. 40 00:01:55,760 --> 00:02:00,280 Speaker 2: Ah. I think the loss of gas or the decline 41 00:02:00,320 --> 00:02:04,160 Speaker 2: of gas was you know, a little unexpected. It certainly 42 00:02:04,320 --> 00:02:06,720 Speaker 2: was for us, and you know it caused a big 43 00:02:06,760 --> 00:02:08,520 Speaker 2: headache for us. I think it cost us two hundred 44 00:02:08,560 --> 00:02:13,160 Speaker 2: million bucks last you know, last half year, So you 45 00:02:13,200 --> 00:02:16,520 Speaker 2: know it certainly caused a headache. But like with every challenge, 46 00:02:16,960 --> 00:02:18,680 Speaker 2: the only question is what do you do about it? 47 00:02:18,840 --> 00:02:23,160 Speaker 2: And you know, the people need electricity, people deserve electricity 48 00:02:23,240 --> 00:02:26,480 Speaker 2: that the economy relies on. It's the lifeblood of our economy. 49 00:02:26,520 --> 00:02:30,760 Speaker 2: And so our job is to tackle the challenge and 50 00:02:30,960 --> 00:02:32,760 Speaker 2: that's what we're focused on. You know, we're kind of 51 00:02:33,200 --> 00:02:36,000 Speaker 2: investing for the long term and making as I say, 52 00:02:36,040 --> 00:02:39,360 Speaker 2: making all these small adjustments, you know, method X offering 53 00:02:39,440 --> 00:02:42,320 Speaker 2: gas back into the electricity sector, as you would have 54 00:02:42,360 --> 00:02:47,000 Speaker 2: seen a deal earlier this year ends this contributing a 55 00:02:47,040 --> 00:02:50,200 Speaker 2: little bit. We're pretty focused at the moment because we're 56 00:02:50,240 --> 00:02:53,440 Speaker 2: you know, twenty five feels like it's in reasonable shape. 57 00:02:53,480 --> 00:02:55,800 Speaker 2: So we're starting to look at twenty twenty six and 58 00:02:55,880 --> 00:02:59,040 Speaker 2: go what do we need to do to ensure the 59 00:02:59,160 --> 00:03:02,840 Speaker 2: energy system is secure and the energy is affordable for 60 00:03:02,880 --> 00:03:06,640 Speaker 2: folk in twenty six is we're busy focused on the 61 00:03:07,080 --> 00:03:11,080 Speaker 2: Huntly Strategic Reserve negotiations so that we've got more energy 62 00:03:11,120 --> 00:03:14,560 Speaker 2: from the Huntly power Station that we expect that we'd need. 63 00:03:14,720 --> 00:03:17,040 Speaker 2: But you know, as they say, you lose gas, you 64 00:03:17,080 --> 00:03:18,680 Speaker 2: tackle the challenge, and that's what. 65 00:03:18,639 --> 00:03:21,160 Speaker 1: We're focusing That's all cool and I get that, but 66 00:03:21,240 --> 00:03:23,560 Speaker 1: it does seem it does seem patchwork to me. I mean, 67 00:03:23,600 --> 00:03:25,400 Speaker 1: we should be doing better as a country. You know, 68 00:03:25,440 --> 00:03:26,840 Speaker 1: a bit of method X here and a bit of 69 00:03:26,960 --> 00:03:29,280 Speaker 1: Lergy there and a bit of Huntly over there. I mean, 70 00:03:29,320 --> 00:03:30,720 Speaker 1: you know, why aren't we better than this? 71 00:03:31,800 --> 00:03:35,240 Speaker 2: I think I think it's that unexpected decline in gas. 72 00:03:35,480 --> 00:03:38,600 Speaker 2: You know, your point is, we have an unbelievable bounty 73 00:03:38,840 --> 00:03:43,560 Speaker 2: of renewable resource. There's no question about where we will 74 00:03:43,600 --> 00:03:47,520 Speaker 2: be as a country in future. Right, so as all 75 00:03:47,560 --> 00:03:52,240 Speaker 2: countries around the globe decarbonized or electrify their economies, we 76 00:03:52,320 --> 00:03:56,520 Speaker 2: have a natural competitive advantage. It's just we were relying 77 00:03:56,560 --> 00:04:00,360 Speaker 2: on gas as a transition fuel, and obviously it hasn't 78 00:04:00,360 --> 00:04:04,240 Speaker 2: played out the way that we'd expected, and so in 79 00:04:04,280 --> 00:04:07,440 Speaker 2: the meantime we've got a period where we do have 80 00:04:07,480 --> 00:04:11,080 Speaker 2: to patch together a number of solutions while we invest 81 00:04:11,160 --> 00:04:14,920 Speaker 2: to manage that transition effectively. But no question about where 82 00:04:14,920 --> 00:04:15,360 Speaker 2: will land. 83 00:04:15,600 --> 00:04:19,200 Speaker 1: Okay, So in patching this together as you are, is 84 00:04:19,240 --> 00:04:21,640 Speaker 1: there a problem potentially down the track? Years down the track. 85 00:04:21,680 --> 00:04:23,240 Speaker 1: Once you've got your solar and your wind and your 86 00:04:23,240 --> 00:04:26,520 Speaker 1: battery back up, suddenly gas goes boom again and suddenly 87 00:04:26,560 --> 00:04:28,800 Speaker 1: we've got what you would potentially call an oversupply. 88 00:04:30,240 --> 00:04:31,960 Speaker 2: Well, I think that's a you know, I don't think 89 00:04:32,000 --> 00:04:34,400 Speaker 2: that's a challenge for the country micas that would just 90 00:04:34,480 --> 00:04:37,760 Speaker 2: mean lower electricity prices or energy prices generally. I think 91 00:04:37,800 --> 00:04:41,279 Speaker 2: that'd be a good problem for the country to have as. 92 00:04:41,560 --> 00:04:42,480 Speaker 1: But is that realistic? 93 00:04:44,279 --> 00:04:47,919 Speaker 2: I honestly don't know. You know, the gas sector certainly 94 00:04:47,920 --> 00:04:52,560 Speaker 2: has its challenges and you know, kind of way i'd 95 00:04:52,600 --> 00:04:55,000 Speaker 2: frame it is it feels like it's in terminal decline, 96 00:04:55,080 --> 00:04:57,800 Speaker 2: but as we found out last year, we were surprised 97 00:04:57,800 --> 00:05:00,360 Speaker 2: by the decline and gas and the speed that And 98 00:05:00,400 --> 00:05:03,280 Speaker 2: it could be that someone explores and find gas. So 99 00:05:03,640 --> 00:05:05,760 Speaker 2: who knows, you know, all I know. All I know 100 00:05:06,000 --> 00:05:09,560 Speaker 2: is people want electricity prices to come down, rightly, so 101 00:05:09,680 --> 00:05:13,880 Speaker 2: do I. There's a lot of political media scrutiny on 102 00:05:13,960 --> 00:05:17,080 Speaker 2: the sector, and you know, that seems the right sort 103 00:05:17,120 --> 00:05:21,359 Speaker 2: of focus from my perspective. We're open for change and 104 00:05:21,600 --> 00:05:24,880 Speaker 2: doing things, you know, differently than we have in the past, 105 00:05:24,960 --> 00:05:28,720 Speaker 2: and get on tackle the challenge that we've gotten, try 106 00:05:28,760 --> 00:05:31,680 Speaker 2: and ensure that the country has a secure and affordable 107 00:05:31,800 --> 00:05:32,279 Speaker 2: energy spot. 108 00:05:32,360 --> 00:05:33,840 Speaker 1: Where do you talk about the government's role do you 109 00:05:33,920 --> 00:05:35,719 Speaker 1: expect them to break up gent tailors or not? 110 00:05:37,640 --> 00:05:42,560 Speaker 2: I honestly don't know, you know, I think that's a 111 00:05:42,640 --> 00:05:45,640 Speaker 2: question we'll find the answer to in a couple of weeks. 112 00:05:47,240 --> 00:05:49,479 Speaker 2: I don't think, you know. So if we did go 113 00:05:49,560 --> 00:05:53,919 Speaker 2: down that route, that doesn't solve the underlying problem. You know, 114 00:05:53,960 --> 00:05:56,640 Speaker 2: the underlying problem being gas suppliers. You could break the 115 00:05:56,640 --> 00:06:00,000 Speaker 2: gentailors into one hundred pieces, and that doesn't create more gas. 116 00:06:00,120 --> 00:06:03,520 Speaker 2: So you know, if I look at what the government 117 00:06:03,560 --> 00:06:06,800 Speaker 2: has done, is they've brought some firepower to bear in 118 00:06:06,920 --> 00:06:10,520 Speaker 2: the couple one hundred million bucks to support expiration risk 119 00:06:10,720 --> 00:06:13,680 Speaker 2: in the gas sector. I think that's a really useful 120 00:06:13,760 --> 00:06:16,960 Speaker 2: change for anybody who is willing to or expecting to 121 00:06:17,000 --> 00:06:23,960 Speaker 2: take risk in developing, you know, gas infrastructure. So you know, 122 00:06:24,000 --> 00:06:27,640 Speaker 2: those sorts of changes I think are helpful. But I 123 00:06:27,720 --> 00:06:31,560 Speaker 2: tell you we're open for any change that will help 124 00:06:31,640 --> 00:06:35,799 Speaker 2: make energy more affordable and stimulate investment in the country. 125 00:06:35,920 --> 00:06:40,400 Speaker 2: So you know, wherever they land, you know, we're open 126 00:06:40,480 --> 00:06:42,960 Speaker 2: for Yeah, what we're up for and open for change. 127 00:06:43,000 --> 00:06:45,240 Speaker 2: You know that this sector has been under review. The 128 00:06:45,279 --> 00:06:48,560 Speaker 2: market's been in place for twenty nine years, and it's 129 00:06:48,640 --> 00:06:52,080 Speaker 2: been reviewed consistently through that period. 130 00:06:52,480 --> 00:06:55,359 Speaker 1: I've got to go random question, if there was no 131 00:06:55,440 --> 00:06:58,120 Speaker 1: real argument or politics around it, would you be into nuclear? 132 00:07:02,839 --> 00:07:06,119 Speaker 2: I think the natural resource that we've got the fact 133 00:07:06,120 --> 00:07:09,080 Speaker 2: that we've got so much water in this country, MIC 134 00:07:09,160 --> 00:07:13,600 Speaker 2: that can help integrate the intermittent resources like wind and solar. 135 00:07:14,440 --> 00:07:17,000 Speaker 2: I think we can do it cheaper through the natural 136 00:07:17,000 --> 00:07:22,600 Speaker 2: bounty that we've got, even if nuclear was available. So 137 00:07:23,920 --> 00:07:26,200 Speaker 2: I think we're really well placed as a country, and 138 00:07:26,320 --> 00:07:29,160 Speaker 2: I think the long run, we're in really good shape. 139 00:07:29,200 --> 00:07:31,720 Speaker 2: I think we've just got to navigate this challenge that 140 00:07:31,760 --> 00:07:36,440 Speaker 2: we're currently in and you know, grab our teeth a 141 00:07:36,440 --> 00:07:39,120 Speaker 2: little bit andre with the issues that in front of us. 142 00:07:39,200 --> 00:07:41,320 Speaker 1: Yeah, all right, good to talk to you appreciate it 143 00:07:41,360 --> 00:07:44,560 Speaker 1: very much. Interesting inside Mike run who's the Meridian chief executive. 144 00:07:45,800 --> 00:07:47,240 Speaker 1: Has it been a two? More on Anybody? 145 00:07:47,720 --> 00:07:50,600 Speaker 2: For more from the Mic Asking Breakfast, listen live to 146 00:07:50,760 --> 00:07:53,800 Speaker 2: news talks that'd be from six am weekdays, or follow 147 00:07:53,840 --> 00:07:55,360 Speaker 2: the podcast on iHeartRadio.