New Zealand's Genesis, Spark seal PPA for 63-MW solar project

New Zealand power and gas utility Genesis Energy Ltd (NZE:GNE) and telecommunications company Spark New Zealand Ltd (NZE:SPK) have signed a power purchase agreement (PPA) for the electricity generated by the 63-MW Lauriston solar farm set for construction not far from Christchurch.

Under the ten-year PPA, Spark will purchase Lauriston’s entire output, which will enable it to meet around 60% of its annual power requirements, Genesis said on Monday.

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The utility will source the remaining 40% from the grid, it said.

Delivery of renewable energy certificates to Spark is included in the arrangement.

The Lauriston solar project is promoted by the joint venture (JV) between Genesis and FRV Australia, a unit of global renewables developer Fotowatio Renewable Ventures (FRV). The partners broke ground on the plant at a site on the Canterbury Plains about a month ago.

The JV has a ten-year PPA in place with Genesis for all of Lauriston’s output.

The solar farm is expected to commence operation by the end of the 2024 calendar year, Genesis said.