New Zealand's Genesis to take over 127-MWp solar project at home

New Zealand power and gas utility Genesis Energy Ltd (NZE:GNE) has agreed to acquire an advanced-stage 127-MWp solar project in the North Island from Auckland-based developer Helios Energy.

The deal is expected to become unconditional in the second quarter of the 2025 financial year, Genesis said in a press release.

The project, consented and with grid connection agreements in place, is located on a 207-hectare (511.5 acres) site in the town of Edgecumbe in the Bay of Plenty region. The solar farm will be equipped with approximately 220,000 modules and produce around 230 GWh of electricity annually. Genesis said that it plans to maintain dual land use, allowing sheep grazing beneath the solar panels.

The utility plans to take the final investment decision (FID) on the project by mid-2025. It said it will then decide whether to develop the site on its balance sheet or through an alternative structure.

The project is expect to cost approximately NZD 216 million (USD 130.7m/EUR 118.5m), or about NZD 1.7 million per megawatt-peak, although the FID and detailed design processes will determine the final size, development costs and the solar farm’s resulting generation output, the press release said.

The Edgecumbe solar farm is expected to start power production in 2026. Genesis will be its sole owner and off-taker.

The company is currently building the 63-MWp Lauriston solar farm near Christchurch, a project it holds in a joint venture with FRV Australia. This project in on track to produce first power later in 2024.

"We're delivering strategy through a combination of joint venture, balance sheet finance, and power purchase agreements. We’ve seen through our experience at Lauriston the benefit of purchasing advanced developments and turning them from bragawatts into megawatts,” commented Tracey Hickman, Chief Wholesale Officer at Genesis.

With a large and diverse customer base Genesis can take opportunities for new renewables and deliver them to market quickly, while we continue to explore other sites and possibilities," Hickman added.

(NZD 1.0 = USD 0.605/EUR 0.549)

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