NZ Clean Energy (NZCE), a Foresight portfolio company, and Mercury have entered a long-term power purchase agreement (PPA) under which Mercury will purchase the renewable electricity generated by NZCE’s Masterson solar and energy storage project.
The agreement represents a significant partnership between one of New Zealand's leading electricity generators and retailers and an independent renewable energy developer, supporting the delivery of new renewable generation capacity and strengthening the country’s long-term energy security.
Located near Masterton in the Wairarapa region, the Masterton solar and energy storage project is a 118 MW development designed to generate approximately 190 GWh of renewable electricity annually – the equivalent needed to power about 27 000 homes (more than all the homes in the Wairarapa). Once operational, the project will contribute meaningful new renewable generation to New Zealand’s electricity system, helping meet growing demand while supporting the transition to a lower-emissions economy.
The project has been carefully planned to integrate renewable energy generation with existing farming activities, allowing sheep grazing to continue across the site throughout its operational life. In addition to supporting New Zealand’s clean energy ambitions, the development is expected to deliver tangible economic benefits to the Wairarapa region, including the creation of more than 100 jobs during the construction phase.
NZCE has commenced early works on site and is now in the final stages of selecting the contractor to complete the build. Following contractor appointment, mobilisation and installation will begin, with full construction set to begin early in the New Year.
NZCE has already engaged with a number of local contractors across a range of roles and is keen to continue building these relationships as the project progresses. The company encourages ongoing collaboration with local businesses and contractors throughout the construction phase.
From the outset, NZCE has engaged with landowners, community representatives, and other key stakeholders to help shape the project. This collaborative approach will continue as the project moves forward, ensuring ongoing dialogue and strong local partnerships throughout construction and operations.
The Masterton project demonstrates how collaboration between independent renewable energy developers and established electricity market participants can help bring new renewable generation to market. Through a long-term PPA with Mercury, the project has secured the revenue visibility needed to support investment and advance toward construction.
Harry Simpson, CEO of NZCE, highlighted: “Reaching this agreement with Mercury is a significant step forward for the Masterton project and reflects growing confidence in the role independent renewable developers can play in New Zealand’s energy future. Projects of this scale require strong partnerships and a shared long-term vision. By working together, developers and energy retailers can help bring the new generation online faster, attract investment into critical infrastructure, and support a more resilient and sustainable electricity system for New Zealand.”
George Hughes, Chief Operating Officer of NZCE, commented: “The Masterton project brings together many of the elements needed for successful renewable energy development, including an excellent solar resource, access to grid infrastructure, and the potential to integrate energy storage over time. This agreement with Mercury is an important endorsement of both the project and our approach to developing renewable assets, as we continue to expand our renewable energy portfolio.”
Long-term PPAs provide the revenue certainty required to finance and build large scale renewable infrastructure while giving offtakers access to competitively priced renewable electricity over extended periods. NZCE believes agreements of this nature will play an increasingly important role in delivering the generation capacity required to meet New Zealand’s future energy needs.
Mercury Executive GM Wholesale, Tim Thompson, concluded: “We’re excited to back the Masterton project through our first major grid scale solar PPA. Solar will complement our hydro, wind, and geothermal generation, adding further diversity and resilience to our renewable portfolio. We’re investing significantly in new renewable generation ourselves, and this project is another way we can support development. Ultimately, adding more renewable energy to the grid will support greater system resilience and help power New Zealand’s future economic growth.”
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