NZ Clean Energy (NZCE) and Fonterra have announced a long-term Virtual Power Purchase Agreement (PPA) under which the Co-operative will purchase electricity generated by NZCE's Darfield Solar and Energy Storage Project.
The agreement represents one of New Zealand's first large-scale solar PPAs between a major industrial energy user and an independent renewable energy developer.
The Darfield Solar and Energy Storage Project is a 129 megawatt development located near Fonterra's Darfield manufacturing site in Canterbury, designed to generate approximately 218 gigawatt hours of renewable electricity annually.
The PPA will provide the Co-operative with flexible, cost-effective access to renewable electricity and help manage electricity price risk at its Darfield site and other manufacturing operations in the region.
The solar project has been designed to enable continued sheep grazing across the project site, preserving the land's agricultural character and reflecting NZCE's commitment to responsible, low-impact renewable energy development.
During construction, the project is expected to create more than 100 jobs, contributing to regional economic growth in Canterbury alongside New Zealand's broader renewable energy ambitions.
NZCE has placed value on working closely with the local community, landowners and stakeholders throughout the development of the Darfield project, and the relationships built along the way have meaningfully shaped the project. That commitment to engagement will continue as the project moves into the next phase.
Supporting renewable power generation, Fonterra is investing in new capital projects to transition away from fossil fuels to renewable energy sources as part of its broader decarbonisation strategy.
The Co-operative is committed to supporting the development of new renewable power generation in New Zealand to promote new supply, improve security of supply and encourage the ongoing decarbonisation of New Zealand’s electricity sector.
A replicable model for New Zealand's energy transition
For NZCE, the Darfield project represents more than a single development; it establishes a framework the company intends to replicate across its growing portfolio of renewable energy projects throughout New Zealand.
By partnering directly with large energy users through long-term PPAs, NZCE is developing a model that provides the contractual certainty needed to finance and build new renewable generation, while offering corporate electricity users a credible, competitively priced pathway to meeting their own sustainability goals.
NZCE sees agreements of this kind as central to unlocking private investment in New Zealand's renewable energy infrastructure, reducing reliance on the spot market, accelerating project delivery, and deepening the relationship between developers and the industries they power.
Fonterra, with its significant energy demand across multiple South Island sites, is an ideal long-term partner for developing and maturing this model.
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