Genesis Energy commits $106 million to second-stage battery storage at Huntly

Genesis Energy has reached final investment decision on a 100 MW / 200 MWh battery energy storage system at Huntly Power Station, increasing total installed capacity to 200 MW / 400 MWh. The NZ$106 million project, expected operational by Q3 FY28, will be the lowest cost committed grid-scale BESS in New Zealand, leveraging existing infrastructure from Stage 1.

Genesis Energy has reached final investment decision on the second stage of its battery energy storage system programme at Huntly Power Station, according to an official announcement. The project will add 100 MW / 200 MWh of BESS capacity, increasing total installed capacity to 200 MW / 400 MWh, sufficient to power approximately 120,000 homes for two hours. The estimated project cost is NZ$106 million with a target internal rate of return of approximately 10%.

Genesis Energy is a New Zealand electricity generator and retailer listed on the NZX and ASX. The project will leverage existing land, infrastructure, grid connection, and shared plant from the first-stage BESS to deliver the lowest cost committed grid-scale BESS in New Zealand to date. Saft has been appointed for supply and long-term servicing, consistent with the first stage. Construction is expected to commence in Q2 FY27, with commercial operation expected by Q3 FY28.

This development matters for New Zealand's electricity system, where BESS provides fast-response capability increasingly important as the generation mix evolves. The project supports Genesis' broader NZ$2 billion growth plan to support growing customer demand, displace baseload gas generation, and strengthen electricity security.

For the energy storage industry, the project demonstrates the value of co-locating BESS with existing thermal generation sites to reduce capital costs. Stakeholders including large customers and system operators stand to benefit from enhanced portfolio and system flexibility. The project will be funded on balance sheet, following a NZ$400 million equity raise completed in March 2026, aligning with Genesis' capital management framework while maintaining its BBB+ credit rating.