Successful bid price of containerized BESS project in New Zealand 2025

How much does a Bess project cost in New Zealand?

Construction of the BESS, located south of Whangārei, the northernmost city of New Zealand, began in early 2023 and was completed within the project’s original budget of NZ$186 million (US$109 million). It forms stage two of Meridian’s Ruakākā Energy Park development.

How does a Bess project make money?

There are two key direct revenue streams for a standalone BESS project: energy arbitrage and ancillary services. Energy arbitrage involves purchasing electricity to charge the batteries when wholesale prices are low and supplying that energy back to the grid when wholesale prices are higher.

Who is delivering a Bess system in NZ?

Saft, a subsidiary of TotalEnergies, is delivering this system, and Meridian anticipates that the BESS will generate annual revenues of up to NZ$59.3 million. Transpower, a state-owned transmission company, is noted to have played a key role in planning, construction and commissioning.

How much does Bess cost?

The cost of BESS has fallen significantly over the past decade, with more precipitous drops in recent years: This is nearly a 70% reduction in three years, owing to falling battery pack prices (now as low as $60-70/kWh in China), increased deployment, and improved efficiency.

When is the first Bess project commissioned in New Zealand?

Whilst amendments were first made to New Zealand's Electricity Industry Participation Code 2010 (the Code) in 2018 to facilitate grid-scale BESS, the first significant (35MW) BESS project was not commissioned until March 2024.

Why is Bess important in New Zealand?

The uptake of BESS in New Zealand is particularly important given that it can help to solve one of New Zealand’s biggest energy challenges – meeting peak demand. In recent years, there have been ongoing concerns as to the reliability of New Zealand’s energy supply following blackouts in 2021.