Genesis Energy Turns to Coal Amid Energy Shortfall

Highlights:

• Coal Reliance Surges: Genesis Energy Limited (NZX: GNE) reported a 52% increase in thermal generation, primarily coal, during the first quarter of FY2025, as the country faced hydro and gas shortages.
• Huntly Power Station's Role: CEO Malcolm Johns highlighted the critical role of the Huntly Power Station in maintaining New Zealand’s energy security during the winter months.
• Call for Sector Collaboration: Genesis is urging collaboration across the energy sector to strengthen infrastructure and transition towards renewable energy sources in the future.

Genesis Energy Limited (NZX: GNE) saw a significant rise in coal usage during the first quarter of the 2025 financial year, as New Zealand faced a major energy shortfall. At the time of writing, Genesis Energy's reliance on coal surged as hydro lakes hit critically low levels and a gas shortage left the country struggling to meet its energy demands.

Increased Thermal Generation

In the first quarter of 2025, thermal generation reached 1,281 gigawatt-hours, marking a 52% increase compared to the same period in 2024. Genesis was forced to rely heavily on the Huntly Power Station, one of the few coal-burning plants in the country, to maintain energy stability. This marked a notable shift in the company’s usual reliance on more sustainable energy sources like hydro and wind.

Huntly Power Station Critical to Energy Security

Malcolm Johns, Chief Executive of Genesis Energy, emphasized the importance of the Huntly Power Station in maintaining New Zealand’s energy security. He noted that the winter months had demonstrated how essential the station was for both the country’s energy grid and overall economy.

"Now is the time for us to be working with the energy sector to strengthen our infrastructure and ensure we can continue to provide secure and affordable power to New Zealanders,” Johns said.

Future Challenges and Sector Collaboration

The heavy reliance on coal during this period has reignited concerns over the country’s transition to renewable energy. Genesis Energy has called for increased collaboration across the energy sector to address the current challenges while transitioning towards cleaner energy sources. The company is also evaluating future investments in renewable projects to reduce its carbon footprint and strengthen energy resilience.

Investors and environmental advocates will be watching closely to see how Genesis balances immediate energy needs with its long-term sustainability goals.

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