Harmony Energy and First Renewables Joint Venture successfully complete financial close on New Zealand’s largest solar farm

Written by
Jack Kelly
Harmony Energy Limited and Clarus company, First Renewables Limited have approved the final investment for the Tauhei Solar Farm project and successfully completed financial close, with construction set to begin this year.

Harmony Energy New Zealand Managing Director Garth Elmes said: “We are excited to have reached this significant milestone, with all major contracts, financing, consents and regulatory approvals now in place. We will now start construction on New Zealand’s largest solar farm, marking a significant milestone for the nation in its pursuit of providing cleaner, home-grown energy.”

At the time of commissioning in late 2026, the Tauhei project is expected to be New Zealand’s largest solar farm at 202 MWp, constructed on 182 hectares near Te Aroha in the North Island. The solar farm will generate 280 gigawatt hours of electricity per year, which is enough renewable electricity to supply the equivalent of approximately 35,000 New Zealand homes.

Clarus General Manager Future Fuels, James Irvine said: “This major solar farm project is a significant step forward in supporting the decarbonisation of New Zealand’s energy system. It will also generate jobs and business opportunities, support biodiversity in the area including by creating a wetland and allow the continued productive use of the land for farming.”

During its two-year construction phase, the project will create around 350 full-time equivalent jobs during the peak of construction, as well as producing permanent full-times jobs once construction is completed.

The Joint Venture has appointed Elecnor, a leading global renewable energy engineering procurement and construction contractor, as the lead construction partner to build the solar farm.

The funding requirements are supported by a syndicated debt facility provided by ANZ, ASB, BNZ and MUFG Bank.

The solar farm project is supported by a power purchase arrangement with Meridian Energy, who will purchase 100% of the output for the first 10 years of operation.

Meridian Chief Executive Neal Barclay said the agreement shows that New Zealand’s electricity industry is working well to provide for consumers.

“As we continue to invest and build renewable electricity assets throughout New Zealand, this agreement will provide even more certainty for Kiwi households and businesses. Tauhei Solar Farm ticks all the boxes for us – it’s an exciting development generating clean energy from the abundant Waikato sun, that’ll add more resilience to New Zealand’s electricity supply.

“This is a great example of a large retailer supporting new generation in the wholesale market, and it clearly shows how the electricity system is delivering new competitive and commercially viable independent generation.

“I congratulate Harmony Energy and First Renewables for their progress on this outstanding project – it adds real value to New Zealand.”

The solar farm will connect to the Transpower’s 110kV network at the Waihou substation (“WHU”) where the solar power will be transmitted by the national grid.

Priority has been given to protecting the local environment with the planting of around 120,000 native plants. Approximately 25,000 native plants have already been planted on the boundary of the solar farm to ensure screen planting is established as early as possible.

The majority of the site will remain in productive farming, switching from dairy farming to sheep farming. The photovoltaic panels will provide shelter and shade for the sheep, while also helping to retain moisture in the ground during the hottest months of the year.

Outside its joint venture with First Renewables Power, Harmony Energy New Zealand has secured a further nine solar / BESS projects aimed at bolstering the nation’s clean energy capacity and energy security.

Harmony Energy Commercial Director Pete Grogan commented on the pipeline: “Strategically we are in an excellent position with all the land required for our projects under option and all our grid connections towards the top of Transpower’s Generation Connection Pipeline. Furthermore, with our connections at 110kV or 220kV, we will have dispatch priority over competing generation connected at lower voltages.

“With the construction of Tauhei Solar Farm set to begin and consents already granted for projects in Masterton, Marton and Opunake, 2025 promises to be a formative year for the New Zealand business. The ability of Garth and the team to deliver project finance deals like Tauhei, with off-takers like Meridian Energy, puts them in a class of their own in the New Zealand market.”

Read the Bloomberg feature here

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