Four of New Zealand’s major power generators have joined forces to create a national energy reserve, aiming to avoid future winter power shortages and price spikes.

The 10-year fuel stockpile agreement between Genesis, Mercury, Meridian and Contact was announced by Energy Minister Simon Watts and Associate Minister Shane Jones.

The move follows last year’s dry winter, which exposed serious gaps in New Zealand’s energy supply and left households and businesses under pressure.

According to Minister Watts, the shortage could’ve been avoided with more fuel in reserve.

The reserve is designed to act as a buffer during times when hydro lakes are low and wind or solar power aren’t producing enough.

It’s a response to both past energy issues and changes brought in by the previous government, including a ban on new gas exploration and a push for 100% renewable electricity.

“Power companies now understand the expectation: boost supply, avoid outages, and keep energy affordable,” said Mr Watts.

Locally, the announcement is a reminder of the need for reliable energy here on the Hibiscus Coast, especially with our growing population and businesses.

It’s not just about the big picture.

It’s about making sure our lights stay on and power prices don’t spike when the weather turns.

The Government is also reviewing regulations, fast-tracking energy infrastructure, and pushing for better market competition to make sure our energy system stays secure, affordable and fit for the future.

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