Photo: RNZ / Nate McKinnon
Meridian Energy and Nova Energy have partnered on building and operating a solar farm near Taupō to bring power to more than 100,000 customers.
Nova received resource consent for the Te Ruahi solar farm at Rangatāiki in April this year and now Meridian has jumped on board to share the $660 million cost.
Meridian chief executive Neal Barclay said the power companies expect the 400 MW farm to be approved in the first quarter of next year.
But he said it will be carried out in two stages, with construction of the first 200 MW plant starting in the second half of 2025.
"I think this is really big project, it's $660 million so by splitting the commercial risk across two entities it's a more sensible commercial proposition for both of us going forward. We've found that we're very aligned in terms of what we're trying to achieve here, which is produce renewable energy for New Zealanders and so the joint venture is on a really solid, sound footing."
Incoming Meridian Energy chief executive Neal Barclay. Photo: Supplied
He said the companies will share the capital and operating costs, and electricity offtake 50-50.
But the timeline for when construction will be completed is not set in stone yet.
Barclay said the project will be built on an existing dairy farm.
"As the solar farm is built out the dairying will be reduced and replaced by sheep farming. We'll have this really nice, harmonious relationship we believe between renewable energy and good agricultural use of our land."
In a statement, Nova Energy chief executive Babu Bahirathan said the partnership demonstrates the power of collaboration on renewable energy.
"With a strong New Zealand-owned company like Meridian alongside us, we can accelerate the development of much needed electricity supply and continue our planned build-out of large grid-scale solar projects."
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