Highlights:

  • Genesis approves second-stage Huntly BESS, doubling total capacity to 200MW / 400MWh
  • Project to enhance grid flexibility and support ~120,000 homes for up to two hours
  • Investment aligns with $2 billion Gen35 strategy and energy transition goals

Overview:
Genesis Energy Ltd (NZX:GNE) has approved the Final Investment Decision (FID) for the second stage of its Battery Energy Storage System (BESS) at Huntly Power Station, marking another milestone in its long-term growth strategy. The expansion will add 100MW / 200MWh of capacity, doubling the site’s total storage capability and reinforcing its role in New Zealand’s evolving energy system. By leveraging existing infrastructure and grid connectivity, the project is expected to be one of the most cost-efficient grid-scale BESS developments in the country. The investment supports increasing electricity demand, enhances system reliability, and reduces reliance on gas-fired generation. Backed by a recently strengthened balance sheet, the project reflects Genesis’ focus on delivering sustainable, flexible energy solutions.

How Will the Huntly BESS Expansion Strengthen Energy Security?

The second-stage BESS project at Huntly Power Station is designed to improve both system reliability and operational flexibility. With an additional 100MW / 200MWh capacity, the total storage will reach 200MW / 400MWh, enabling the system to supply electricity to approximately 120,000 homes for up to two hours. Battery storage plays a critical role in balancing supply and demand, particularly as renewable energy sources such as solar and wind introduce variability into the grid. The fast-response capability of BESS allows Genesis to stabilise fluctuations and ensure consistent power delivery. This development also strengthens the strategic importance of the Huntly site as New Zealand transitions toward a lower-carbon and more dynamic electricity network.

How Does This Investment Fit into Genesis’ Growth Strategy?

The Huntly BESS expansion forms a key part of Genesis Energy’s broader $2 billion Gen35 strategy, aimed at meeting rising electricity demand while supporting decarbonisation. The project, with an estimated cost of NZ$106 million and a target internal rate of return of around 10%, will be funded directly from the company’s balance sheet, supported by a $400 million equity raise completed in March 2026. Genesis continues to follow a flexible capital management approach, combining internal funding, partnerships, and power purchase agreements to optimise investment. The appointment of Saft for supply and long-term servicing ensures continuity with the first-stage BESS, supporting efficient execution and long-term operational performance.