Genesis Energy is reviewing options for a potential capital raise after the government signalled it is open to providing new funding to state-controlled power companies.
At its annual meeting, Genesis chair Barbara Chapman said the company had received a letter from Finance Minister Nicola Willis confirming the government’s willingness to participate in future equity raisings.
The move follows the release of the Frontier Economics report, which found that mixed-ownership companies such as Genesis, Meridian and Mercury had been limited in pursuing major renewable projects because of a perception that the Government would not support capital injections.
Willis’ clarification marks a shift in policy and could reopen the door to taxpayer-funded investment in the energy sector. Chapman said it was “good to have clarity” and that Genesis was “reviewing all our options, including potential additional equity requirements.” The company’s $1.1 billion Gen35 plan aims to expand renewable generation by 2035.
The development raises questions over the future of New Zealand’s mixed-ownership model, which was designed to limit political involvement in state-owned enterprises.
Any new equity participation could expose taxpayers to the financial risks of large-scale renewable projects while helping meet national energy and emissions goals.
Genesis also noted that about 60 percent of its 2025 price rises were due to increased regulated line charges, which are passed through to consumers, with further increases expected over coming years.
Centrist Ltd.