{"id":507438,"date":"2026-07-03T06:08:15","date_gmt":"2026-07-03T06:08:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/507438\/"},"modified":"2026-07-03T06:08:15","modified_gmt":"2026-07-03T06:08:15","slug":"renewable-energy-boom-where-the-solar-wind-and-battery-farms-are-being-built-in-nzs-race-to-100-clean-power","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/507438\/","title":{"rendered":"Renewable energy boom: Where the solar, wind and battery farms are being built in NZ\u2019s race to 100% clean power"},"content":{"rendered":"

He said New Zealand needed to combine with Australia, which is also making a big push into renewables, to be relevant in global supply chains for new projects.<\/p>\n

\u201cSo even though we\u2019re building faster now than we did during the Think Big era, New Zealand is still a very small part of the global market,\u201d he said.<\/p>\n

Renewable projects require specialised skills, so there has been a lot of \u201cfly in and fly out\u201d, mainly between Australia and New Zealand.<\/p>\n

Meridian Energy general manager of development Guy Waipara said that if current trends continue, New Zealand\u2019s electricity system will be fully renewable by 2030, assuming normal conditions.<\/p>\n

We are almost there already.<\/p>\n

This week, Transpower data showed the system was running at 95% renewable \u2013 mostly reflecting well-stocked hydro storage lakes.<\/p>\n

\u201cThere\u2019s just so much investment happening,\u201d Waipara said.<\/p>\n

\u201cWe are going to get to 100% plus or minus half a per cent.<\/p>\n

\u201cThat puts New Zealand in a pretty close to unique position with its electricity system.\u201d<\/p>\n

Waipara said New Zealand\u2019s renewables \u201cecosystem\u201d had been built up around dozens of projects that are on the go.<\/p>\n

He has a team of 70 to 80 people working on new projects and he expects to see 100 on the job by 2027.<\/p>\n

\u201cIt\u2019s kind of going counter to the economy in general.<\/p>\n

\u201cWe\u2019re growing and hiring, doing a lot of work in the communities and creating a lot of jobs, so it feels good that we can do that.<\/p>\n

\u201cIn Wellington, a lot of companies or government departments are downsizing, so we feel pretty fortunate to be in that position.\u201d<\/p>\n

Waipara\u2019s staff undertake planning and engineering assessments to assess feasibility and the kind of yield that can come off each potential project.<\/p>\n

New projects often involve doing roadwork and the civil works for wind farms are quite often challenging.<\/p>\n

Then there are the specialised firms to transport the equipment \u2013 blades for wind turbines, grid-scale batteries and replacement turbines for the hydro fleet.<\/p>\n

Meridian, New Zealand\u2019s biggest power company, and its competitors are all stepping up their efforts on the renewables front.<\/p>\n

After the winter 2024 price spike, and this year\u2019s Iran war-driven oil price hike, the industry is under no illusions about the need for renewables.<\/p>\n

But players are also aware that too much construction can generate too much power, depress prices and make new projects uneconomic.<\/p>\n

As it stands, New Zealand electricity futures trading on the ASX, an important driver of long-term hedge contracts, show a downtrend over the next three years, reflecting extra supply coming on stream.<\/p>\n

The quicker-than-expected rundown of New Zealand\u2019s gas reserves, combined with unusually dry and calm weather, drove wholesale power prices as high as $820 per megawatt hour in August 2024.<\/p>\n

Today, electricity trades at about $50-60\/MWh.<\/p>\n

Waipara said the rundown of domestic gas reserves had driven a \u201cget things done faster\u201d attitude for the industry.<\/p>\n

In real terms, building renewables, aside from a period of hyperinflation during the Covid period, had become cheaper and China-manufactured solar panels have become a smaller part of the overall cost.<\/p>\n

He said lower prices have enabled solar farms to be built earlier than was anticipated five to 10 years ago.<\/p>\n

\u201cIf you look at what we\u2019re doing and what our competitors are doing, by 2030, New Zealand will be at 100% renewable in an average hydro year.\u201d<\/p>\n

In future, hydro is expected to play a bigger role in \u201cpeaking\u201d \u2013 supplying power when there is a peak in demand because dam turbines can respond in seconds.<\/p>\n

Waipara says hydro is the backbone of the system, and still more power can be wrung from it.<\/p>\n

\u201cThey [hydro dams] are all over the country and they all catch different types of weather so I think there\u2019s a lot we all need to do to push hard in the hydro space to see what we can unlock.\u201d<\/p>\n

Genesis Energy\u2019s Johns said New Zealand needed to lower the total cost of power and to increase energy security.<\/p>\n

\u201cElectricity needs to produce around 60% of New Zealand\u2019s total energy [from 30% today].<\/p>\n

\u201cSo if you were at 60%, electricity and 40% fossil, the average saving cost per household in total average energy costs would be $2500 a year and New Zealand would save $10 billion a year in importing foreign fuel.\u201d<\/p>\n

Electrifying transport and light to medium process heat is the critical pathway to lowering total energy costs for New Zealanders, he said.<\/p>\n

Johns believes the long-term average of renewable electricity generation in New Zealand will be between 95% and 97%.<\/p>\n

\u201cThat means you\u2019ll have periods with a 100% renewable electricity generation, and periods where 5-7% might still have to come from thermal.<\/p>\n

\u201cDuring low rain periods or evening peaks, or when the wind drops out, you\u2019re still going to need back-up.<\/p>\n

\u201cAnd, so New Zealand is well on the way with what we\u2019re building at the moment to, you know, probably averaging 97% renewability.<\/p>\n

\u201cBut there will be large periods of time when we\u2019re at a 100% renewable electricity generation so that\u2019s a fantastic outcome.\u201d<\/p>\n

Genesis will be spending $2.2b between now and 2032 on new renewables.<\/p>\n

The others are spending billions as well.<\/p>\n

\"Meridian'sMeridian’s $186 million battery energy storage system at Ruak\u0101k\u0101, south of Whang\u0101rei.<\/p>\n

\u201cWe have 36,000 rooftop solar customers in New Zealand and some months they produce up to 5% of the company\u2019s total electricity so we\u2019re buying it back off the rooftops of our customers.\u201d<\/p>\n

A number of factors had combined to drive up the pace of new builds.<\/p>\n

The New Zealand Aluminium Smelters\u2019 signing up to take power up to 2044 had added certainty to the outlook for energy planners.<\/p>\n

Johns said the Government\u2019s \u201cFast Track\u201d consenting process, and a proactive approach from Transpower in connecting new projects to the grid, and the large investment programme were adding to the momentum.<\/p>\n

\u201cWe have to accept that we are in the messy middle of an energy transition at the moment,\u201d he said.<\/p>\n

\u201cThere\u2019ll be some bumps along the way, but the momentum has definitely swung in behind building renewables.\u201d<\/p>\n

A significant shift in the equation had been last year\u2019s deal between Genesis and the other big power companies to support the gas and coal-burning Huntly Power Station.<\/p>\n

The deal means there will always be a guaranteed 600,000 tonnes of coal ready to go at Huntly if there is a problem in the system or with the weather.<\/p>\n

Johns also noted the Government\u2019s commitment to have 90 million litres of diesel in reserve at Marsden Point.<\/p>\n

New Zealand has two diesel-powered peaking power plants \u2013 Contact\u2019s Whirinaki Power Station and Genesis Energy\u2019s Unit 6 at Huntly.<\/p>\n

He said arrangements for extra coal and diesel were not in place during the winter price spike of 2024.<\/p>\n

\u201cAnd so it\u2019s important that we have sufficient fuel in reserve in the country to ensure that we can ride through whatever bump comes along \u2013 a major gas well failure, major plant fault in a generator somewhere, earthquakes, international supply chain disruptions.<\/p>\n

\u201cWe\u2019ve got to start understanding that energy security is not just about a dry year \u2013 it\u2019s about having sufficient fuel in reserve in New Zealand,\u201d Johns said.<\/p>\n

\u201cI just take a lot of heart in the fact that electricity will be a growth sector probably for the next 25 years because it makes economic security and environmental sense.\u201d<\/p>\n

The industry expects 2% per annum growth in electricity demand out to about 2030.<\/p>\n

If growth comes in less than that, there is a chance the equation tips in favour of too much supply.<\/p>\n

\u201cBut if demand comes in stronger than that, you know, we might, we might be building at the right level, or we might need to build some more stuff.<\/p>\n

\u201cIt is a challenge because you\u2019re building assets that will be around for up to 50 years, and they take between three and seven years lead time to build.\u201d<\/p>\n

Transpower chief executive James Kilty said the company had picked up the pace to connect new projects to the grid at a time of increased generation and load.<\/p>\n

In the \u201cdelivery\u201d phase \u2013 either in detailed design or under construction \u2013 Transpower had about 2900 megawatts of renewables in the works.<\/p>\n

\"MeridianMeridian Energy West Wind farm, Wellington, has been operational since 2009.<\/p>\n

\u201cWe\u2019ve seen the amount of work we\u2019ve had to get on top of to grow very rapidly.<\/p>\n

\u201cFor a while there, I think everyone got taken by surprise at the rate of acceleration, which was also a bit in response to the rate of decline in gas.\u201d<\/p>\n

Kilty said the system is changing rapidly to accommodate wind and solar.<\/p>\n

There are about 330 megawatts of batteries on the system, and another 300 megawatts in construction to be commissioned in the next 18 months.<\/p>\n

\u201cBatteries shift the likes of solar or wind generation by storing the energy at a time when there\u2019s too much of it, because solar and wind, of course, you can\u2019t control when those resources come.\u201d<\/p>\n

Rooftop solar and distributed energy \u2013 power generated close to where it is used \u2013 feature in a number of scenarios Transpower develops for planning.<\/p>\n

In terms of the energy transition, Kilty expects to see more growth in power demand as more people switch to electric vehicles and businesses opt out of thermal.<\/p>\n

\u201cThere\u2019s a lot of energy that has to transition off fossil fuels and on to our endowment of clean renewable energy.\u201d<\/p>\n

Meridian\u2019s Waipara said as the power system gets bigger, the hydro power generated on a percentage basis will get smaller.<\/p>\n

\u201cSo the problem gets smaller and smaller, and it\u2019s also helped by the fact that there\u2019s a lot of renewables getting done,\u201d he said.<\/p>\n

And how will the system, with its new solar and wind farms, and batteries, evolve from here?<\/p>\n

\u201cAll we can say is that the future will not look like the past.\u201d<\/p>\n

Who is doing what<\/p>\n

Meridian<\/p>\n

Under construction<\/p>\n

Te R\u0101hu Solar Farm (a joint venture with Nova)<\/p>\n

Ruak\u0101k\u0101 Solar Farm<\/p>\n

Coming up<\/p>\n

Mt Munro Wind Farm<\/p>\n

Te Rere Hau Wind Farm repowering (replacing old turbines) <\/p>\n

Bunnythorpe Energy Park \u2013 solar farm and battery.<\/p>\n

Lake P\u016bkaki contingent storage (a draft decision).<\/p>\n

Mercury<\/p>\n

Under construction<\/p>\n

Kaiwaikawe Wind Farm, Northland (77MW)<\/p>\n

Kaiwera Downs Wind Farm, Stage 2, Southland <\/p>\n

$75m to geothermal appraisal drilling Ng\u0101 Tamariki and Rotokawa geothermal sites near Taup\u014d.<\/p>\n

Waikato Hydro System Refurbishment Maraetai I, \u014ch\u0101kur\u012b and \u0100tiamuri<\/p>\n

Coming up<\/p>\n

Mahinerangi Wind Farm, Stage 2, Otago<\/p>\n

Whakamaru Battery Energy Storage System (Bess).<\/p>\n

Contact Energy<\/p>\n

Kowhai Park Solar<\/p>\n

Te Mihi Stage 2 Geothermal<\/p>\n

Glenbrook-Ohuroa Battery2 <\/p>\n

Glorit Solar (with Lightsource bp)<\/p>\n

Genesis Energy<\/p>\n

Huntly Bess 1<\/p>\n

Huntly Bess 2<\/p>\n

Coming up<\/p>\n

Leeston Solar Farm (consented)<\/p>\n

Rangiriri Solar Farm (consented)<\/p>\n

Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.<\/p>\n

Stay ahead with the latest market moves, corporate updates, and economic insights by subscribing to our\u00a0Business newsletter<\/a>\u00a0\u2013 your essential weekly round-up of all the business news you need.<\/p>\n","protected":false},"excerpt":{"rendered":"He said New Zealand needed to combine with Australia, which is also making a big push into renewables,…\n","protected":false},"author":2,"featured_media":507439,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[3548,40549,95,192,6081,682,16424,6658,138,40834,1667,12705,63059,22220,78,2454,111,139,69,3272,15148,10112,13578,7798,9999,5659,4166,39811,131,223,5662,61,540,10000,4576,80],"class_list":["post-507438","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-3548","tag-1980s","tag-and","tag-are","tag-battery","tag-being","tag-boom","tag-built","tag-business","tag-clean","tag-energy","tag-farms","tag-faster","tag-going","tag-in","tag-industry","tag-new-zealand","tag-newzealand","tag-nz","tag-nzs","tag-pace","tag-power","tag-projects","tag-race","tag-renewable","tag-say","tag-solar","tag-sources","tag-than","tag-the","tag-think","tag-to","tag-where","tag-wind","tag-work","tag-zealand"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/507438","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=507438"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/507438\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/507439"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=507438"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=507438"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=507438"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}