Genesis shuts Huntly gas unit to free up supply amid high hydro levels

Author: Jamie Gray,
Publish Date: Wed, 10 Jun 2026, 1:12pm

Genesis Energy says high hydro lake levels will allow it to shut its gas-powered turbine, the 400MW Unit 5 at Huntly, to make gas available to commercial and industrial users over the second half of this year.

Unit 5 is an important piece of equipment as it supplies baseload, or continuous, power to the national grid.

It is the largest thermal generating unit in the country, with capacity to supply about 400,000 homes.

In 2025, Unit 5 was similarly shut down for three months from October to December, with a three-to-five day call-back period, subject to fuel availability.

“This year’s arrangement has been supported by high hydro storage levels, an established coal stockpile at Huntly Power Station, and Genesis’ ability to leverage the flexibility of its generation and fuels portfolios to support the wider energy system,” Genesis said.

Outside of planned outage work in October, Unit 5 can be available with a callback period of three to five days, subject to fuel availability and market demand, it said.

The current gas and electricity market conditions had enabled Genesis to reprioritise fuel to higher value uses without compromising security of electricity supply, absent large unforeseen outages elsewhere in the system, the company said.

The move also enabled Genesis to direct gas to consumers which have otherwise been unable to secure supply.

The closure starts from July 1 and ends on December 31.

High hydro lake levels have put New Zealand’s energy system in a good place this winter, with wholesale power prices trading this week at just $5.80 per megawatt hour.

That’s in stark contrast to the winter price spike of 2024, when diminishing gas supplies and a long, dry and calm winter, drove prices up to $820MWh, forcing some factories to close and prompting calls for system changes.

This week, the Government said it was “progressing” two providers to a request for proposal to deliver an LNG (liquefied natural gas) import facility.

Separately, the Government said it would introduce a “winter energy reliability obligation” requiring major power companies and large electricity users to secure enough back-up energy before a dry year.

Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.