Electricity prices spiked on Monday afternoon due to issues at multiple power plants, prompting Transpower to issue a rare call for more power availability. A Transpower spokesperson confirmed that one plant was forced offline, and another had to reduce output. This occurred alongside a drop in wind power and maintenance on a key power line connecting the North and South Islands.
Contact Energy’s Tauhara geothermal plant went offline late in the morning, but generation was restored by evening, with the plant generating 120MW. Genesis Energy also reduced output from its Huntly power station’s coal-fired turbine due to an unplanned outage of its cooling tower. The company expects the tower to be back online by March 3.
Transpower reported a surge in spot market prices, hitting over $2300 per megawatt, more than 12 times the normal rate for long-term contract customers. Transpower issued a “low residual” notice warning that power availability would remain below the 200MW buffer until 5:30pm, the first such advisory since September.
John Harbord, chair of the Major Electricity Users Group, expressed concerns about power shortages this winter, citing dry conditions and rising scarcity pricing. He warned that businesses with long-term contracts are exposed to high prices, and the risk of dry winters seems built into power prices for the next four years.
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