Contact Energy accelerates renewable investment, targeting net zero by 2035

Contact Energy's chair reported a strong performance and significant investment in renewable generation, positioning the company as a leader in New Zealand's decarbonisation. The company has committed over $2.3 bn to critical energy infrastructure in the past four years, including $1.2 bn for new renewable generation projects like Tauhara and Te Huka 3, adding 1.9 TWh of annual generation to power 260,000 homes. An additional $1.1 bn is currently under construction for geothermal, solar, and grid-scale batteries, expected to contribute a further 0.6 TWh of net new generation and 100 MW of new storage.

The company is on track to achieve net zero in its generation operations by 2035. Its generation emissions have already reduced by 50%, which will increase to 75% with the planned closure of the Taranaki Combined Cycle plant this year. The acquisition of Manawa Energy, completed on July 11, 2024, is noted as a key step to enable further investment in renewable generation and enhance market security. Contact also highlights its long-term electricity agreements with major companies like NZ Steel, Fonterra, and Oji Fibre Solutions, supporting new energy demand and economic growth.

The chair stressed the need for stable market settings to support investor confidence in renewable generation, which provides decades of benefit. New Zealand is a global leader in renewable infrastructure investment, with $240 per person invested annually between 2021 and 2024. The chair also acknowledged challenges with the gas market, noting that an abrupt gas decline, resulting from a cut in fuel supply and government policy, impacted the country faster than anticipated.