QLargest solar farm in New Zealand reaches financial close

The growth of utility-scale solar in New Zealand has received a much-needed boost after financial close was reached on what is expected to be the country’s largest solar farm.

New Zealand power company Genesis Energy and joint venture partner FRV Australia – the local subsidiary of Spanish renewable energy developer Fotowatio Renewable Ventures (FRV) – announced last week that they had reached financial close on a 63MW solar farm to be built at Lauriston on the Canterbury Plains.

Originally planned as a 52MW project, engineering optimisation has increased project capacity to 63MW, and is expected to begin generating electricity later this year.

“We are thrilled to announce this significant milestone for Lauriston Solar Farm,” said Carlo Frigerio, FRV Australia CEO.

“This marks our inaugural financial closing in New Zealand, serving as the cornerstone for FRV Australia and Genesis development efforts. It is a pivotal moment for both our presence in the country and the solar industry, which is just beginning to take root.”

Located an hour’s drive from Christchurch on the South Islan, the Lauriston solar farm will be built on a 93-hectare site and is expected to generate power equivalent to the needs of nearly 13,000 houses.

With construction contract confirmed and initial work already underway, construction of the Lauriston solar farm is expected to cost $NZ104 million.

Genesis and FRV Australia are also in the process of assessing three sites on New Zealand’s North Island which would add up to a combined capacity of up to 400MW.

However, these nevertheless represent the first few utility-scale solar farms to be built in New Zealand, which only completed construction and operation of its first such project in November of 2023.

The most recent data available for New Zealand dates back to the end of 2022, which reveals that there were 43,641 solar systems installed across New Zealand, adding up to 240MW, accounting for under 1% of total electricity consumption – well behind many other industrialised nations, not to mention their trans-Tasman neighbours.

But plans for more utility-scale solar are slowly building steam. In addition to projects being undertaken between Genesis and FRV, Meridian Energy is planning the 75MW Ruakākā Solar Farm which is expected to be brought online by year’s end.

“Solar has a clear role to play in New Zealand’s energy transition as a renewable source of generation,” said Trackey Hickman, chief wholesale officer with Genesis Energy.

“It will enable us to provide cleaner energy to our customers, while also reducing emissions from our generation portfolio as Genesis invests in new renewable generation and moves to become net zero by 2040.

“The pleasing aspect of this project is it shows the value of our joint venture and that the model we have put in place for Lauriston works. It has allowed us to sign quality delivery partners, including our lead contractor, equipment suppliers and lenders.”