New Zealand-based power company Meridian Energy and wind energy firm NZ Windfarms have unveiled plans to establish a joint venture aimed at expanding the Te Rere Hau wind farm, with an estimated capital outlay of up to NZ$600 million ($348.36 million).
The announcement sent shares of NZ Windfarms soaring, as they surged by 35% to NZ$0.158, marking their most substantial intraday gain ever and propelling them to a more than 10-month high. Meridian Energy's shares also experienced a positive trajectory, rising as much as 0.4% to NZ$4.875.
Situated on New Zealand's North Island, the Te Rere Hau wind farm presently boasts 91 small turbines, with a collective installed capacity of 45.5 megawatts (MW). This expansion initiative is set to introduce around 39 new turbines, significantly enhancing the farm's power generation capacity, potentially reaching up to 170 MW.
Meridian Energy highlighted the groundbreaking nature of this endeavor, describing it as New Zealand's inaugural wind farm repowering project. It holds the potential to generate seven times the annual renewable energy production of the existing fleet.
As part of this collaborative agreement, Meridian intends to acquire shares in NZ Windfarms, equivalent to a 19.99% shareholding. Additionally, Meridian plans to enter into a 15-year power purchase agreement, ensuring the acquisition of all electricity generated by the repowered project.
The final investment decision for the project's expansion is slated for the second quarter of 2025, with the anticipated completion date towards the close of the fiscal year 2027. This endeavor signifies a significant step in New Zealand's renewable energy landscape, with the potential to contribute substantially to the country's sustainable energy goals.
