1 00:00:00,160 --> 00:00:02,040 Speaker 1: Jeremy Hutton, Milford Acid Managements with us. 2 00:00:02,040 --> 00:00:04,400 Speaker 2: Now, hey Jeremy, Evening, Heather. 3 00:00:04,680 --> 00:00:07,720 Speaker 1: So Meridian Energy it hosted the old Invested Day today. 4 00:00:07,760 --> 00:00:09,760 Speaker 1: Looks like big growth is coming for the company, but 5 00:00:09,880 --> 00:00:11,360 Speaker 1: not just the company, the sector as well. 6 00:00:11,400 --> 00:00:16,400 Speaker 2: Ah, yeah, that's right and an an interesting Investorday yesterday, 7 00:00:16,480 --> 00:00:19,040 Speaker 2: And yeah, you're right. These usually are a good opportunity 8 00:00:19,079 --> 00:00:21,960 Speaker 2: for companies to show the market how they're thinking about 9 00:00:22,000 --> 00:00:25,400 Speaker 2: things and display some of their plans and strategy for 10 00:00:25,440 --> 00:00:29,680 Speaker 2: the next few years. And unsurprisingly, the energy transition is 11 00:00:29,720 --> 00:00:33,480 Speaker 2: really checking up this electricity sector. A few quick numbers 12 00:00:33,800 --> 00:00:38,000 Speaker 2: that Meridian highlighted, so New Zealand electricity demand is expected 13 00:00:38,040 --> 00:00:41,440 Speaker 2: to grow between fifty and seventy five percent over the 14 00:00:41,440 --> 00:00:44,479 Speaker 2: next few decades, and Meridian's already seeing some of this 15 00:00:44,640 --> 00:00:48,440 Speaker 2: increased demand coming through in their monthly stats already. And 16 00:00:48,479 --> 00:00:52,280 Speaker 2: also the electricity sector has to invest over thirty billion 17 00:00:52,320 --> 00:00:55,760 Speaker 2: dollars in their estimates in new generation to meet this demand. 18 00:00:56,240 --> 00:00:58,800 Speaker 2: So a really big challenge for the sector coming up totally. 19 00:00:58,840 --> 00:01:01,040 Speaker 1: And what's Meridian's plan, how's it going to develop this? 20 00:01:02,600 --> 00:01:04,400 Speaker 2: Yeah, it will be a challenge to meet this growth. 21 00:01:04,480 --> 00:01:08,080 Speaker 2: And Meridian did highlight a few projects that they've got 22 00:01:08,120 --> 00:01:09,800 Speaker 2: on the go that they want to complete in the 23 00:01:09,840 --> 00:01:13,360 Speaker 2: next five years, no mean feed. It's three wind farms, 24 00:01:13,400 --> 00:01:17,000 Speaker 2: four solar projects and a battery project as well. And 25 00:01:17,040 --> 00:01:19,280 Speaker 2: the costs unknown yet for a lot of this, but 26 00:01:19,360 --> 00:01:22,080 Speaker 2: it will be in the billions for the company. But 27 00:01:22,160 --> 00:01:26,480 Speaker 2: Meridian was clear that this was or the cost was 28 00:01:26,480 --> 00:01:30,160 Speaker 2: an issue for the sector and itself to cover. It 29 00:01:30,240 --> 00:01:32,480 Speaker 2: has the capability and the balance sheet to meet this 30 00:01:32,920 --> 00:01:35,920 Speaker 2: and it won't need any government support at all, and 31 00:01:35,959 --> 00:01:38,400 Speaker 2: this is a big difference to other countries. Of course, 32 00:01:38,480 --> 00:01:42,480 Speaker 2: governments around the world are piling billions into renewable energy investments, 33 00:01:43,000 --> 00:01:46,680 Speaker 2: so this should keep the local New Zealand governments happy. 34 00:01:46,720 --> 00:01:49,000 Speaker 1: Did they talk at all about gas and the problems 35 00:01:49,040 --> 00:01:49,760 Speaker 1: we're having with gas? 36 00:01:49,840 --> 00:01:53,200 Speaker 2: Jeremy, Yeah. Gas has got a lot of attention this 37 00:01:53,280 --> 00:01:56,280 Speaker 2: year and they did discuss this. Supply is very tight 38 00:01:56,320 --> 00:01:59,520 Speaker 2: in the gas market and this does impact electricity as 39 00:01:59,560 --> 00:02:04,440 Speaker 2: gases used during our peak electricity demand periods, and Meridian 40 00:02:04,560 --> 00:02:06,400 Speaker 2: was really clear that gas was still going to be 41 00:02:06,440 --> 00:02:10,720 Speaker 2: required as a transition fuel until twenty thirty five. There's 42 00:02:10,760 --> 00:02:13,760 Speaker 2: no technology in their view that can replace this as 43 00:02:13,760 --> 00:02:16,079 Speaker 2: of yet, but it sounds like there's a bit of 44 00:02:16,080 --> 00:02:18,520 Speaker 2: a sector working group going on to try and allay 45 00:02:18,600 --> 00:02:21,560 Speaker 2: some of these concerns. The relevant ministers have been heavily 46 00:02:21,600 --> 00:02:24,840 Speaker 2: involved as well, and it looks like an energy import 47 00:02:24,960 --> 00:02:28,320 Speaker 2: terminal could be a solution. So this is quite interesting 48 00:02:28,360 --> 00:02:30,840 Speaker 2: and it could solve a lot of our security of 49 00:02:31,040 --> 00:02:36,360 Speaker 2: supplier shoes, especially during this near term transition phase. But 50 00:02:36,440 --> 00:02:38,480 Speaker 2: it is a bit early days. So what's the state. 51 00:02:38,760 --> 00:02:41,200 Speaker 1: Yeah, and look, we've been talking about the fast FasTrak 52 00:02:41,240 --> 00:02:43,160 Speaker 1: proposal on the show just in the last twenty minutes 53 00:02:43,240 --> 00:02:45,280 Speaker 1: or so. Did that get any discussion at all? 54 00:02:45,919 --> 00:02:49,239 Speaker 2: Yeah, Consenting and the consenting regime in New Zealand did 55 00:02:49,240 --> 00:02:52,000 Speaker 2: get a lot of discussion. Very typical as you say, 56 00:02:52,040 --> 00:02:54,680 Speaker 2: with our topical as you say, with the fast track 57 00:02:55,800 --> 00:02:59,160 Speaker 2: proposal by the government. Meridian was also very clear that 58 00:02:59,160 --> 00:03:01,519 Speaker 2: the regime is just far too complex at the moment 59 00:03:02,160 --> 00:03:05,960 Speaker 2: and it effectively requires unanimous approval, which lets face it 60 00:03:06,040 --> 00:03:10,720 Speaker 2: is really impossible in today's age. And these delays to 61 00:03:10,840 --> 00:03:14,120 Speaker 2: projects are really adding to the massive costs. You know, 62 00:03:14,440 --> 00:03:17,360 Speaker 2: it's extending these projects by a couple of years in 63 00:03:17,400 --> 00:03:22,040 Speaker 2: some instances, and with electricity as well, stopping developers trying 64 00:03:22,040 --> 00:03:26,880 Speaker 2: to build more generations to meet this electricity demand. And 65 00:03:26,960 --> 00:03:29,800 Speaker 2: quite simply, if it is an address, then electricity costs 66 00:03:29,800 --> 00:03:32,040 Speaker 2: will continue to increase in the interim period. 67 00:03:32,440 --> 00:03:34,359 Speaker 1: Jeremy, thank you for talking us through to appreciate it. Mate. 68 00:03:34,360 --> 00:03:37,880 Speaker 1: That's Jeremy Harston more for Asset Management. For more from 69 00:03:37,920 --> 00:03:41,240 Speaker 1: Hither Duplessy Allen Drive, listen live to news talks. It'd 70 00:03:41,240 --> 00:03:45,320 Speaker 1: be from four pm weekdays, or follow the podcast on iHeartRadio.