Australian (ASX) Stock Market Forum

CEN - Contact Energy

20 July 2021
Contact Energy (’Contact’) will close its 44-megawatt Te Rapa power station in June
2023, reducing the company’s long-term scope 1 and 2 carbon emissions by 20 per
cent per annum. 1
The Te Rapa plant has been operating since 1999. It is a gas-fuelled cogeneration
plant, providing steam and electricity to Fonterra's Te Rapa dairy factory, and directing
surplus electricity back to the grid.
The current agreement for Contact to supply Fonterra with electricity expires in June
2023. Fonterra will acquire the plant’s auxiliary boiler and will continue to use these
assets for its dairy operations beyond June next year, but the gas turbine used to
generate electricity at Te Rapa will be retired.
Contact has a team of 16 people at Te Rapa. CEO Mike Fuge said it had been an
unsettling time, but it was good to be able to provide people with more certainty.
“It is business as usual until June next year, and everybody in our team at Te Rapa
will be looked after. After the power station closes, there will be some opportunities for
people to move across to Fonterra’s Te Rapa team or be redeployed elsewhere within
Mr Fuge said the closure of the Te Rapa power station next year aligned with Contact’s
strategy to decarbonise New Zealand and decarbonise its own portfolio. “We are
committed to ramping up our development portfolio to help meet the anticipated
demand for renewable electricity, complemented by reducing our portfolio of thermal
This will reduce Contact’s long-term scope 1 and 2 emissions by 20 per cent – or
200,000 tons per annum.
“The gap in generation created by the closure of Te Rapa next year will be replaced
by new, renewable generation that is set to come on stream over the coming years,”
Mr Fuge said.
Currently 83 per cent of Contact’s electricity generation is renewable.


i hold CEN
20 July 2021
For the month of December 2022

The Customer business recorded:
• Mass market electricity and gas sales of 283GWh
(December 2021: 288GWh)
• Mass market netback of $122.17/MWh (December 2021:
» The Wholesale business recorded:
• Contracted Wholesale electricity sales, including that
sold to the Customer business, totalled 568GWh
(December 2021: 644GWh)
• Electricity and steam net revenue of $84.10/MWh
(December 2021: $83.33/MWh)
• Electricity generated (or acquired) of 612GWh
(December 2021: 684GWh)
• The unit generation cost, which includes acquired
generation was $27.01/MWh (December 2021:
• Own generation cost in the month of
$26.32/MWh (December 2021: $18.30/MWh)
» Tauhara project progress vs. target for December 2022 was
79% vs. 74% *
» Otahuhu futures settlement wholesale price
for the 1st quarter of 2023 (ASX):
• As at 18 January 2023: $187/MWh
• As at 30 December 2022: $167/MWh
• As at 30 November 2022: $138/MWh
» As at 18 January 2023, South Island controlled
storage was 107% of mean and North Island
controlled storage was 149% of mean
• As at 18 January 2023, total Clutha
scheme storage was 84% of mean
• Inflows into Contact’s Clutha catchment
for December 2022 were 76% of mean.
(November 2022: 117% October 2022: 73%
September 2022: 112%)
» As at 1 January 2023, Contact’s contracted gas
volume (including contracted swaps) for the
next 12 months is 13.45PJ**
» In light of the reduction in modelled storage
capacity at AGS, announced 21 December
2022, Contact is reviewing the contract with
AGS to determine potential onerous contract
For the month of December 2022
** Forecast gas volumes as notified by suppliers, actual gas received is dependent
on field delivery
Prior periods restated to account for metering costs, previously included within ‘Cost to serve’, have been
reclassified to ‘Electricity direct pass thru costs’ to better reflect the direct nature of these costs and to improve
comparability with the industry.
*The progress target for Tauhara follows an S-Curve model in line with standard project management practice
(for large scale infrastructure projects). This will result in more gradual increments in the reporting of target and
actual progress as the project nears completion in Q4 of 2023.



i hold CEN

will need to drop another $1 to tempt me to add more