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NEWS RELEASE Path towards carbon neutral goal positive for New Zealand, says Mercury 26 July 2020 – Mercury has welcomed the government’s announcement today of energy investments to help towards New Zealand’s climate change goal of being net carbon neutral by 2050. Chief Executive Vince Hawksworth says it is crucial to carefully consider all potential solutions to the climate change challenge and the contribution that New Zealand, New Zealanders, and an efficient well-functioning energy sector can make. “As part of that, it is important to understand how the energy system can manage the risk posed by dry years impacting our hydro system, at least cost and greatest effectiveness,” Mr Hawksworth said. In relation to investigating the concept of pumped storage, or other storage options such as batteries, Mr Hawksworth said that the challenge will be to ensure that any storage scheme is carefully designed and implemented so that it does not undermine investment incentives in other renewable projects. Currently the electricity market is delivering around $1bn of new renewable investments, including by Mercury which is building New Zealand’s largest wind farm at Turitea near Palmerston North. The International Energy Agency noted in 2017 that New Zealand is a world-leading example of a well-functioning energy market, which continues to work effectively. All decisions about the introduction of large-scale storage need to be made in ways that maintain that balance, Mr Hawksworth said. Mr Hawksworth said that investment needs to build on what has been achieved so far in terms of securing a careful balance in New Zealand of energy security (stable supply), energy equity, and environmental sustainability. As 60% of energy used in our economy still comes from fossil fuel use, a bold target is needed reduce that burden on the climate. “The announced investment to convert industries away from fossil fuel use in process heat is a useful targeted step to encourage change,” he said. “New Zealand needs to show real ambition towards electrification in this area, and also to the electrification of transport if we are to meet the 2050 target of net zero emissions.” ENDS For investor relations queries, please contact: William Meek 0275 173 470
For media queries, please contact: Craig Dowling 0272 105 337
ABOUT MERCURY NZ LIMITED Mercury’s mission is energy freedom. Our purpose is to inspire New Zealanders to enjoy energy in more wonderful ways and our goal is to be New Zealand’s leading energy brand. We focus on our customers, our people, our partners and our country; maintain a long-term view of sustainability; and promote wonderful choices. Mercury is energy made wonderful. Visit us at: www.mercury.co.nz
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The Mercury Building, 33 Broadway, Newmarket 1023 PO Box 90399, Auckland 1142 New Zealand
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mercury.co.nz