$28m solar investment to boost regional power resilience

Three regional solar energy projects in New Zealand will receive loans totalling up to $28.1 million through the Regional Infrastructure Fund to improve energy security, cut diesel reliance, and support local economic resilience.

The loans will support solar farm developments in the Bay of Plenty, Hawke’s Bay and on Rakiura/Stewart Island, creating up to 150 construction jobs and improving power reliability for thousands of households and businesses.

“The loans for these projects in Bay of Plenty, Hawke’s Bay and Rakiura/Stewart Island will allow them to get under way this year, helping them to improve economic prosperity and resilience. They will also create up to 150 jobs during construction,” Regional Development Minister Shane Jones says.

The projects support the Coalition Government’s objective of doubling renewable energy generation by 2050 and enabling a more reliable and affordable electricity supply for regional New Zealand.

The three projects include:

• Rakiura/Stewart Island: A suspensory loan of up to $15.35 million to Southland District Council for the first stage of a solar farm and network upgrades. The project will replace high-cost diesel generation and support 494 electricity connections. Diesel use is expected to fall by 200,000 litres within two years. About 40 skilled workers will be involved in construction.
• Ongaonga, Hawke’s Bay: A loan of up to $8 million to Centralines Ltd to build a 35-hectare solar farm capable of generating 52GWh annually. The farm will provide a local power source for approximately 9,000 connections and feed power back to the national grid at peak times. Up to 100 jobs are expected during construction.
• Te Kaha, Bay of Plenty: A loan of up to $4.75 million to Te Huata Charitable Trust to build an 804kW-peak solar farm with battery storage for up to 72 hours. The project aims to deliver reliable electricity to about 320 homes and businesses, particularly in a Māori community that experiences regular outages. Up to 12 people will be employed during construction.

“Solar power is playing an increasingly important role in increasing electricity generation in New Zealand. It will help us reach our renewable energy targets and bolster the security and affordability of our energy supply,” Energy Minister Simon Watts says.

“The Government has been making great progress on a series of exciting new solar and battery initiatives recently. I look forward to seeing these three projects make a real difference for these communities.”

Associate Regional Development Minister Mark Patterson, who travelled to Rakiura for the announcement, says the investment would have a real impact for locals.

“The Regional Infrastructure Fund is contributing to energy security where communities cannot gain investment from other sources, and there are wider benefits for the communities,” Patterson says.

He added that more competitive energy costs would support economic growth on Stewart Island, including in aquaculture, tourism and hospitality.