Contact to invite interest in electricity supply agreements

Thursday 10th August 2023

Contact Energy (Contact), in collaboration with its 100%-owned energy solutions business Simply Energy, invites interested parties to submit a proposal for up to 50 megawatts of electricity via hedge contracts (0.4TWh p.a.) for a minimum period of five years, starting from 2024.

Contact Chief Executive Officer, Mike Fuge, said the pro-active release of an open tender aligns with Contact’s commitment to decarbonisation and is designed to meet the surge in requests Contact is receiving from businesses who want long-term electricity contracts to support their decarbonisation targets.

As New Zealand’s leading developer of baseload renewable geothermal electricity, with more than 225MW already under construction, Contact is in a unique position to respond to the unprecedented customer demand. The tender is an orderly way to not only manage the volume of requests but also to deliver competitive pricing and extend the term of our sales book.

“It’s fantastic to see customers looking to support our leading renewable development pipeline. These long-term commitments are good for New Zealand as they provide long term pricing certainty for significant electricity users, and encourage the continued development of new renewable generation.”

Mr Fuge said Contact has made no secret of its willingness to grow the number of long-term electricity agreements beyond those already contracted. “We want to continue to grow demand for our renewable electricity by displacing thermal generation and supporting new electricity demand. We’re delighted to be opening this new avenue for a wide range of parties beyond the traditional market participants.”

Interested parties (who meet the criteria for ‘wholesale investor’ under the Financial Markets Conduct Act 2013) are invited to participate in a Request for Proposals process. Simply Energy will be the key point of contact for this process with tender documents available by contacting RFP_Bids@simplyenergy.co.nz.

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