Partnering to grow New Zealand’s renewable energy
Fonterra is supporting investment in new solar generation to encourage the growth of renewable energy in New Zealand.
The Co-operative has signed two long term virtual Power Purchase Agreements (PPAs) to support large scale solar projects in Canterbury.
Anna Palairet, Chief Operating Officer for Fonterra, says the financial agreements strengthen security of supply for the electricity sector while helping ensure the Co-op’s operations are set up for the future.
“We’re committed to creating a more sustainable future and have a role to play in supporting new renewable energy supply in New Zealand.”
“Solar is a good fit for our operations, with generation aligning well to the peak of the milk season. These agreements help bring new generation to market while at the same time giving us long term price certainty.”
These agreements reflect Fonterra's focus on securing reliable, cost-effective electricity for its operations, while supporting the continued development of New Zealand’s energy infrastructure.
Power Purchase Agreement with ANZA
The Co-op has signed a virtual PPA with ANZA to underpin the construction of a 42-megawatt Somerton Solar Farm near Rakaia, with Fonterra contracting 80 percent of the project’s output.
Carlo Frigerio, Chief Executive Officer, ANZA Power says the agreement with Fonterra is a significant milestone for the Somerton project.
“We are excited by the opportunities in the New Zealand market and are particularly proud that our first offtake will support Fonterra, a long-standing co-operative that is a positive force for economic growth in New Zealand’s regions, including the Ashburton district where our project is located."
Power Purchase Agreement with NZCE
Meanwhile, through a separate agreement with NZ Clean Energy (NZCE), the Co-op is supporting the development of a 129-megawatt Darfield Solar and Energy Storage Project.
Harry Simpson, Chief Executive Officer of NZCE says long-term agreements like these are what’s needed to unlock investment in new renewable generation.
"They give developers the certainty to build and give industrial customers a credible, cost-effective path to source renewable electricity. Fonterra has shown real leadership in pursuing that, and we're proud to be their partner in delivering it."