AUCKLAND, NZ: Contact Energy, one of New Zealand’s largest electricity generators and retailers, has announced that it is inviting proposals for up to 50 megawatts of electricity via hedge contracts for a minimum period of five years, starting from 2024.

The company said that the open tender is aimed at meeting the growing demand from businesses who want long-term electricity contracts to support their decarbonisation targets.

Contact Energy’s Chief Executive Officer, Mike Fuge, said that the company is committed to decarbonisation and is in a unique position to offer renewable geothermal electricity, with more than 225 megawatts already under construction. He said that the tender is an orderly way to manage the volume of requests and to deliver competitive pricing and extend the term of the company’s 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,” Fuge said.

He also said that Contact Energy is willing to grow the number of long-term electricity agreements beyond those already contracted and to grow demand for its renewable electricity by displacing thermal generation and supporting new electricity demand. He said that the company is delighted to be opening this new avenue for a wide range of parties beyond the traditional market participants.

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