Meridian Energy ponders options for Aussie unit with 300 MW of renewables

New Zealand electricity provider Meridian Energy Ltd (NZE:MEL, ASX:MEZ) is mulling over options to divest, either in full or partially, its roughly 300 MW of renewable energy assets in Australia.

The company said in a bourse filing on Tuesday it will conduct a review of its ownership in Meridian Energy Australia, not excluding options for exiting the business. According to it, the process is likely to take several months and no decision will be taken regarding the Australian business until its completion.

Financial advisory and asset management firm Lazard assists with the review.

Meridian Energy is New Zealand’s largest electricity generator and is majority-owned by the country’s government. In Australia, it owns 294 MW of renewable generation capacity, plus a 150-MW renewable development pipeline. Its assets are mainly hydropower plants and wind farms.

Meridian Energy Australia is also the owner of energy retailer Powershop Australia, which is engaged in the supply of electricity and gas.

In the six months ended December 2020, Meridian Energy saw its Australian energy margin dip to NZD 59 million (USD 42.5m/EUR 35m) from NZD 65 million a year back. The company said in its interim report that the higher electricity and gas sales in Australia were offset by lower average prices.

(NZD 1.0 = USD 0.721/EUR 0.592)

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