$40m solar farm construction starts

Site works have started on a $40 million 21MW solar array on farmland near Maungaturoto in Northland.

It’s called Papareireia which refers to the rays of the sun being consumed by the whenua.

A joint venture between Tupu Tonu (the Ngāpuhi Investment Fund Ltd), Purpose Capital and Harbour Infrastructure, Papareireia is expected to be completed next year.

The solar farm will generate up to 32GWh annually – enough to power about 4000 Kiwi homes (or 12,800 EVs) and will reduce carbon emissions by some 3300 tonnes annually.

Its sole customer, via an innovative power purchase agreement (PPA) with Mercury Energy, will be Ryman Healthcare which owns 40 New Zealand retirement villages.

Ryman will buy the power it needs for village operations at a guaranteed price through a 10-year exclusive supply agreement with Harbour Infrastructure and Mercury.

The agreement with Mercury and Ryman Healthcare reflects the evolving landscape of corporate renewable energy in New Zealand, says Harbour Infrastructure chief executive Andrew Archibald.

“This is a progressive and smart approach to green energy procurement that is enabling Ryman to take a step forward on their journey to decarbonisation,” he says.

“It’s also important for New Zealand’s future – the more we can increase the country’s renewable energy supply, the more likely we are to meet our net zero goals and bring energy costs down.”

Purpose Capital’s investment director Matt Currie will take on a governance role in the project.

“The importance of new generation projects like Papareireia is particularly obvious at present given the recent rises in wholesale electricity prices, dwindling gas supply, increasing electricity demand and volatile hydro lake levels due to climatic factors,” says Currie.

The project received debt financing from Westpac New Zealand Limited.

The project supports Ryman’s ambition to build climate-resilient villages and delivers them more surety of cost in a dynamic energy market, says Ryman Healthcare executive chair Dean Hamilton.

“We are targeting 100% electricity from renewable sources in New Zealand,” he says.

“Additionally, the solar farm will help reduce Ryman’s electricity costs and provide certainty over future pricing.”

Crown-owned investment company Tupu Tonu (Ngapuhi Investment Fund Ltd) chair Ben Dalton says it is taking a long-term approach to investment, and energy and infrastructure are key target sectors.

“Investing in renewable energy enables us to grow the value of the fund and contribute to the economic development of the region in a sustainable manner.”