The project will add a further 100 MW / 200 MWh of BESS capacity at Huntly, increasing its total installed capacity to 200 MW / 400 MWh, enough to power approximately 120,000 homes for two hours.
Genesis will leverage existing land, infrastructure, and grid connection, along with shared plant from the first-stage BESS, to deliver the lowest cost committed grid scale BESS in New Zealand to date.
The project will drive greater portfolio and system flexibility and security, provide support for Genesis’ large customer book, and leverage solar investment.
Stage 2 BESS is a further delivery point as part of Genesis’ broader $2 billion growth plan to support growing customer demand for electricity, displace baseload gas generation and strengthen electricity security.
Saft has been appointed for supply and long-term servicing of the BESS, consistent with the first-stage BESS. Construction is expected to commence in Q2 FY27, and the BESS is expected to be operational by Q3 FY28.
Key metrics
- Capacity: 100 MW / 200 MWh
- Estimated Project Cost: ~NZ$106 million
- Target IRR: ~10%
- Location: Huntly Power Station
- Consented: Yes
- Grid Connection: Yes
- Final Investment Decision (FID): 17 April 2026
- Commercial Operation Date: Q3 FY28
The Huntly site zoning and existing consent framework are appropriate for the operation of the expanded BESS facility, with only minor additional consents required for construction activities.
Financing
In line with Genesis’ Capital Management Framework, the project will be funded on balance sheet, which was recently strengthened by a $400 million equity raise completed in March 2026.
This approach aligns with Genesis’ three capital management levers: investing directly from its balance sheet, utilising third-party capital through joint ventures, and leveraging third-party capital via power purchase agreements. These options enable Genesis to deploy capital efficiently while maintaining its BBB+ credit rating and preserving financial flexibility to support future Gen35 investments.
Gen35 current pipeline
Genesis Chief Operating Officer Tracey Hickman commented: “reaching FID on the second-stage BESS reflects the disciplined execution of our Gen35 strategy and our focus on investing in assets that enhance flexibility across our portfolio. BESS provides fast-response capability that is increasingly important as the generation mix evolves, allowing us to better manage variability and support a more dynamic electricity system.”
“This investment also strengthens the role of Huntly within our portfolio, positioning the site to continue supporting system reliability as New Zealand transitions toward a lower-carbon future. We remain focused on delivering projects that create long-term value for shareholders while maintaining security of supply for our customers.”
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