Meridian Energy Limited (ASX: MEZ) has released its monthly operating report for March 2026, highlighting robust market conditions and strategic execution. Meridian Energy Limited (ASX: MEZ) is a leading New Zealand-based electricity generator, primarily utilising hydro and wind resources, and a prominent retailer of electricity to residential and business customers. The report underscored strong retail sales growth, increasing customer demand, and hydro storage levels holding close to historical averages, despite a period of softer monthly inflows. Concurrently, ASX forward electricity prices have continued their decline, reflecting significant investment in new renewable generation capacity and enhanced system security through agreements for Huntly capacity.
CEO Mike Roan noted the company’s sustained momentum through the March quarter, following a strong half-year result. He highlighted that lake levels are favourable heading into winter, with water storage currently 40 per cent higher than the same time last year, although he cautioned that conditions can change. National hydro storage stood at 106 per cent of the historical average by 13 April 2026, with South Island storage at 97 per cent and North Island storage at 180 per cent. While Meridian’s March 2026 monthly total inflows were 74 per cent of the historical average, year-to-date inflows represent the sixth highest on record at 123 per cent of average.
National electricity demand in March 2026 was 4.5 per cent higher compared to March 2025. Meridian’s retail sales volumes surged by 11.4 per cent over the same period, with significant increases across residential (27.8 per cent), agriculture (30.7 per cent), and large business (14.1 per cent) segments. The New Zealand Aluminium Smelters (NZAS) load averaged 575MW, an increase from 524MW a year prior when a demand response reduction was in effect. Mr Roan commented on the “significant” fall in ASX prices, attributing it to the substantial ongoing investment in new renewable generation, which is anticipated to result in more affordable contracted electricity prices. Furthermore, the company has revised its FY26 capital expenditure guidance downwards to between $280 million and $310 million, from the previous range of $330 million to $360 million.
