Contact Energy Limited (NZX: CEN) Contact & Genesis Announce Renewable Electricity Agreement

Thursday 12th August 2021

Contact Energy is set to supply Genesis Energy with renewable electricity for 15 years from 2025, as part of a new, long-term power purchase agreement after key terms were signed today.

The agreement will see Genesis take up to 62.5 megawatts of electricity, equating to 41% of the output capacity from Contact’s geothermal power station being developed at Tauhara. The 152-megawatt power station is under construction and expected to be completed in the middle of 2023.

The Contact/Genesis agreement will commence on 1 January 2025 and the financial details remain confidential.

Key terms of the agreement:

Start date 1 January 2025

Location Tauhara GXP

Price (Years 1–10) Fixed price at start date, escalating at CPI

Price (Years 11–15) Market linked within a collar

Volume Linked to actual Tauhara generation output. Years 1-10 up to 62.5MW (~500GWh p.a.). Volumes reduce over the final 5 years of the contract.

Please see the link below for details

Contact and Genesis announce long-term renewable electricity agreement

Source: Contact Energy Limited

Comments from our readers

No comments yet