New Zealand's Genesis Energy begins construction on 70 MW solar farm

en.Wedoany.com Reported - New Zealand electricity company Genesis Energy has made a final investment decision on the Leeston solar farm project in the South Island, committing NZ$125 million (US$103 million) and moving the project into the construction phase.

The Leeston plant will have a capacity of 70 MWp and will be located on a 111-hectare leased site in the Canterbury region, with approximately 74,000 solar panels to be installed. Once operational, it is expected to generate around 110 GWh of electricity annually. The company said the landowner will still be able to continue grazing sheep on the site after the plant becomes operational.

The company, majority-owned by the New Zealand government, said reaching financial close on the project is the latest step in its long-term growth strategy. Under that strategy, the company plans to invest NZ$2.2 billion (US$1.82 billion) by 2032 in new renewable generation and battery storage, with a solar generation capacity target of up to 500 MW.

Chief Operating Officer Tracey Hickman said the investment will support the growing electricity demand of the company's nearly 500,000 customers and enhance security of supply as New Zealand transitions to a low-emissions energy system. She said Leeston represents further progress in the company's solar project pipeline and expressed excitement about the project getting underway, noting it will add to the pipeline of new renewable generation projects for New Zealand.

Leeston is one of five solar projects the company has either in operation or under construction. Its first solar farm, the 47 MW Lauriston project in the South Island, developed in a joint venture with FRV Australia, began generating electricity in 2025; the 117 MW Tihori project in the North Island is under construction; a 271 MW project near Rangiriri in the Waikato region is progressing toward a final investment decision; and the 220 MW Foxton project planned for the South Island recently received approval under the government's fast-track consenting process.

Hickman said these projects demonstrate the growing importance of solar generation in Genesis Energy's future generation mix and investment plans. She added that each new project is helping the company convert more New Zealand sunshine into renewable electricity, expanding solar's role in powering homes, businesses, and communities.

She also noted that the solar farms are adding value to the grid-scale battery energy storage system being developed alongside the Huntly power station, allowing the company to store electricity during periods of high sunshine and low demand, and release it during morning and evening peak demand periods.

The first 100 MW/200 MWh phase of the Huntly battery energy storage system is now in commissioning, with full operation expected by the end of September 2026. A final investment decision has been made for the second 100 MW/200 MWh phase, with construction expected to begin early next year and completion targeted before the end of 2028.