Lauriston Solar Farm Boosts Genesis’s Renewable Output Ahead of Schedule
Genesis Energy's FY25 Q2 report highlights a strategic pivot towards renewable energy and enhanced portfolio flexibility, marked by the Lauriston solar farm's early generation and a sharp cut in carbon emissions, even as total generation declined.
- Lauriston solar farm commenced generation ahead of schedule
- Total generation down 205 GWh with thermal output falling 42%
- Carbon emissions from generation dropped 65% year-on-year
- Retail customer base grew 4.7%, boosted by Ecotricity acquisition
- Kupe gas production interrupted for 16 days in December
Renewable Energy Gains Momentum
Genesis Energy’s FY25 Q2 performance report reveals a company in transition, aggressively advancing its renewable energy footprint while managing the challenges of a shifting energy market. The standout development was the Lauriston solar farm, New Zealand’s largest to date, which began generating electricity in November, ahead of its December target. This milestone underscores Genesis’s commitment to expanding its renewable portfolio, a key pillar of its Gen35 strategy aimed at sustainable growth and emissions reduction.
Alongside Lauriston, Genesis secured a 62.5 MW geothermal power purchase agreement at Tauhara starting January 2025, further diversifying its renewable sources. These initiatives are designed to free up flexible generation capacity, particularly at the Huntly portfolio, which remains central with its 1,200 MW of generation flexibility.
Operational Shifts and Emissions Reduction
Despite these renewable gains, total generation fell by 205 GWh compared to the prior corresponding period, driven largely by a 42% reduction in thermal generation. This strategic reduction aligns with market dynamics, allowing Genesis to maximise margin leverage through its flexible generation assets. Notably, this shift contributed to a significant 65% year-on-year decrease in generation carbon emissions, reflecting the company’s environmental commitments.
Energy storage capacity also increased, with coal stockpiles at Huntly rising to 518 kilotonnes, representing approximately 1 terawatt-hour of energy, and lake storage averaging 118% of capacity. These reserves provide operational security and support flexible generation management.
Retail Growth and Market Dynamics
Genesis’s retail segment showed resilience, with a 4.7% increase in customer numbers, bolstered by the full acquisition of Ecotricity completed in December 2024 and organic growth in the Frank brand. This expansion strengthens Genesis’s position as one of New Zealand’s largest energy retailers, now serving over 516,000 customers.
Gas netback prices surged 43.1% year-on-year, reflecting higher wholesale prices and improved market conditions. However, the Kupe gas field experienced a 16-day production interruption in December due to an unplanned outage at the de-ethaniser plant, with full production resuming by the end of the month. This disruption may temper near-term gas sales volumes and revenues.
Strategic Outlook and Flexibility Initiatives
Genesis continues to test and commission new flexibility options, including activities at the Tariki-5A well and due diligence on potential gas storage solutions. These efforts are critical to managing the intermittency of renewable generation and ensuring reliable supply in a market increasingly dominated by variable energy sources.
The company’s Gen35 strategy reflects a balanced approach: growing renewables, enhancing flexible generation, and expanding customer reach. The early success of Lauriston and the acquisition of Ecotricity are tangible markers of progress, though operational challenges like the Kupe outage highlight ongoing risks.
Bottom Line?
Genesis’s renewable pivot is clear, but managing thermal declines and operational hiccups will test its growth trajectory in coming quarters.
Questions in the middle?
- How will the Kupe production outage impact FY25 full-year gas sales and earnings?
- What are the timelines and expected capacity for the proposed gas storage options?
- How will Genesis balance thermal generation reductions with market demand volatility?
