Photo: RNZ / Nate McKinnon
Meridian Energy and NZ Windfarms have signed a joint-venture deal to expand Te Rere Hau wind farm near Palmerston North.
The 50-50 joint venture project is estimated to cost between $500 million and $600m, with a final investment decision expected in 2025, and completion expected in late 2027.
Te Rere Hau wind farm was originally constructed in 2006 with five turbines, and currently has 91 small turbines with a generation capacity of 45.5 megawatts.
The extension would add up to 39 new turbines with a generation capacity of up to 170 megawatts.
As part of the deal, Meridian would invest $6.7m in NZ Windfarms, at a price of 15.5 cents per share, and take a minority shareholding in the company.
NZ Windfarms would also undertake a rights issue to existing shareholders at the same price, and the offer would be underwritten by Meridian up to $4.5m.
Meridian chief financial officer Mike Roan said the electricity system needed to "move with pace" to help grow electrification and to move towards net zero emissions.
"Meridian is doing its bit, with projects under construction and at various stages of development, but we are also open to working with like-minded companies, and in NZ Windfarms and Te Rere Hau we have found a great fit," Roan said.
NZ Windfarms obtained a two-year fast track consent for the first phase of the project in May. A second phase of fast-tracked consent for the project was being sought, the two companies said.
NZ Windfarms chair Craig Stobo said Meridian was selected as the preferred partner for the project following an "intensive engagement process".
"If built now, the repowered wind farm would be New Zealand's second largest wind farm after the neighbouring Turitea wind farm," he said.