Three solar projects in regional New Zealand will receive loans of up to NZD 28.1 million combined from the Regional Infrastructure Fund to ensure security of local energy supply and community resilience.
Regional Development Minister Shane Jones and Energy Minister Simon Watts said the loans for these projects in Bay of Plenty, Hawke’s Bay and Rakiura/Stewart Island will allow them to get underway this year, helping them to improve economic prosperity and resilience. They will also create up to 150 jobs during construction.
These projects support the Coalition Government’s objective of doubling renewable energy generation by 2050 and enabling a more reliable and affordable electricity supply for regional New Zealand.
The three projects are:
- Rakiura/Stewart Island – a suspensory loan of up to NZD 15.35m to Southland District Council to build the first stage of a solar farm, and network upgrades, replacing high-cost, diesel-generated electricity for the island’s 494 permanent electricity connections
- Ongaonga, Hawke’s Bay – a loan of up to NZD 8m to local lines company Centralines Ltd to build a 35ha solar farm to generate 52GW annually and provide about 9000 electricity connections in Central Hawke’s Bay with a local source of generation
- Te Kaha, Bay of Plenty – a loan of up to NZD 4.75m to Te Huata Charitable Trust to build an 804kW-peak solar farm to ensure a reliable electricity supply to about 320 homes and businesses.
The Rakiura/Stewart Island project is expected to reduce diesel consumption by 200,000 litres within two years of beginning. During construction, about 40 high-skilled workers will be required.
When complete, more competitive energy costs will help business growth on the island, including in aquaculture, tourism and hospitality.
The Ongaonga solar farm will enhance electricity network resilience and support more competitive pricing for both residential and commercial customers. Power could also be supplied to the national grid at peak generation. About 80-100 roles are expected to be needed during construction.
The Te Kaha project will provide a more reliable and competitively priced power source for a Māori community that regularly experiences electricity outages. The solar farm battery will have a storage capacity of up to 72 hours, protecting the community from power outages.
Reliable power will also support the Ōpōtiki region in its bid to become a national aquaculture centre of significance. During construction, up to 12 people will be employed.
"Solar power is playing an increasingly important role in increasing electricity generation in New Zealand. It will help us reach our renewable energy targets and bolster the security and affordability of our energy supply,” said Watts.
“The Government has been making great progress on a series of exciting new solar and battery initiatives recently. I look forward to seeing these three projects make a real difference for these communities."
Associate Regional Development Minister Mark Patterson travelled to Rakiura for the announcement. He stated that the project should result in considerable savings for residents.
“The Regional infrastructure Fund is contributing to energy security where communities cannot gain investment from other sources, and there are wider benefits for the communities.”
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