Meridian Energy Ltd and Nova Energy Ltd have completed agreements to establish a 50-50 joint venture to build and operate the 400 MW Te Rahui solar farm at Rangitaiki near Taupo. The joint venture has also secured NZ$300 million in project financing through ANZ for the first 200 MW phase of the project.
Project offtake will be shared 50-50 by way of a power purchase agreement with Meridian for 100% of the offtake and a contract for difference with Nova for 50%.
Nova received resource consent for Te Rahui in April 2024. When completed, both phases will produce enough electricity to power around 100 000 homes. First power on phase one is expected in mid-2026, with full power in mid-2027. Neither party has yet received a financial investment decision for stage two (200 MW), but both parties are working to progress stage two as soon as possible.
Meridian Chief Executive, Mike Roan, says the joint venture is a great example of how collaboration can move big projects forward for the benefit of electricity users.
“Te Rahui is a big undertaking and sharing the investment and offtake makes strong commercial sense for both parties, while the project will also benefit home and business customers by further strengthening security of supply.”
“It’s a real win-win and we’re delighted to have this opportunity to partner with Nova on Te Rahui,” said Roan.
Te Rahui, along with four consents secured by Meridian in the past 12 months, shows the company is gathering pace in its goal to commence seven new projects by 2030, with the Harapaki wind farm and Ruakaka BESS already delivered. Also consented are a BESS in the Manawatu, a wind farm at Mount Munro in the Wairarapa, a solar farm to sit alongside the BESS at Ruakaka, and the repowering of the Te Rere Hau wind farm. Construction is underway on the Ruakaka solar farm and the Mount Munro wind farm has progressed to detailed design.
“We are doing our share of the heavy lifting to secure New Zealand’s energy future. Having invested more than NZ$1 billion in the past five years, we have a further NZ$2 billion planned for investment over the next three years. These projects will add over 1000 MW of new capacity, a 5% increase to the electricity system,” added Roan.
“Our contribution to capacity growth goes even further. Through agreements like this one with Nova and the power purchase agreement we have with Harmony Energy/First Renewables for their 150 MW Tauhei solar farm in the Waikato, Meridian is also supporting other developers.”
“All of the work underway across the sector will help make New Zealand’s electricity system more resilient and affordable. I believe it will also enable future economic prosperity. With one of the most renewable grids in the world, New Zealand can take advantage of the opportunity to create and market more green products internationally.”
The parties have awarded construction and initial operations and maintenance contracts to Beon Energy, who specialise in delivering renewable energy projects and have an extensive track record in Australia and New Zealand.
For more news and technical articles from the global renewable industry, read the latest issue of Energy Global magazine.
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