New Zealand green bank backs five solar farms with a total capacity of more than 1GW

A New Zealand green investment bank has committed $NZ78 million to support the development of grid connection infrastructure and further development activities for five solar farms being developed by utility solar developer Far North Solar Farm (FNSF).

The Crown-owned New Zealand Green Investment Finance (NZGIF) announced Tuesday evening that it would provide a $NZ78 million facility to finance grid connection infrastructure and broader development activities for five of FNSF’s solar projects.

FNSF currently has 11 projects in various stages of development with a combined capacity of 1.4GW, including construction of a 22MW project in Pukenui on the Aupouri Peninsula of Northland. The five planned sites targeted by the new financing have a combined capacity of 1,132MW.

“The agreement reflects NZGIF’s mandate to accelerate investment that decarbonises the country’s economy,” said Sarah Minhinnick, NZGIF chief executive.

“The Connection Facility Agreement is a tailored solution, designed by NZGIF, to introduce a new pool of capital to accelerate renewable energy generation in New Zealand. We look forward to seeing more private capital driven towards these solar developments.”

Acting immediately on the spirit of the new financing, FNSF agreed to sign a $NZ22 million works agreement contract with the country’s electric grid operator Transpower.

Transpower said that its grid connection agreement with FNSF, which includes a new substation, will be the first of many around the country in the continuing shift to electrifying the economy.

“The signing of this agreement is a positive milestone for New Zealand’s energy future,” said Raewyn Moss, executive general manager customer and external affairs.

“Transpower has a significant pipeline of other generation projects that want to connect to the national grid which are critical both for security of supply and the decarbonisation of our economy.

“The ability for a developer to access capital is another critical element of getting renewable energy developments off the ground and NZGIF can play a key role in that going forward. We look forward to working with FNSF on this project.”