Meridian Energy and Nova Energy have solidified their partnership with the finalisation of agreements to establish a joint venture (JV) for the construction and operation of the 400MW Te Rahui solar farm near Taupō, New Zealand. This strategic collaboration marks a significant step in the country’s renewable energy landscape, with the first phase of the project securing NZ$300m ($177m) in financing.
The equally owned JV will see Meridian and Nova share the project’s offtake equally. Meridian will purchase the total output, while Nova has entered a contract for difference for half of the electricity produced. The project, which obtained resource consent in April 2024, is expected to power around 100,000 households once both phases are operational. The initial 200MW phase is set to commence power generation in mid-2026, with full operational capacity anticipated by mid-2027.
While financial commitments for the second phase remain undecided, both parties are actively working towards advancing it. Meridian chief executive Mike Roan emphasised the commercial benefits and strategic importance of the project, stating, “Te Rahui is a big undertaking and sharing the investment and offtake makes strong commercial sense for both parties, while the project will also benefit home and business customers by further strengthening security of supply.”
The Te Rahui solar farm is part of Meridian’s broader strategy to initiate seven new projects by 2030. Recent completions, such as the Harapaki wind farm and Ruakākā battery energy storage system (BESS), have bolstered this goal. Additional projects in the pipeline include another BESS in Manawatū, a wind farm at Mount Munro, a solar farm adjacent to the Ruakākā BESS, and the refurbishment of the Te Rere Hau wind farm. The Ruakākā solar farm is currently under construction, and the Mount Munro wind farm has advanced to the detailed design phase.
Roan highlighted Meridian’s significant investment in securing New Zealand’s energy future, noting, “We are doing our share of the heavy lifting to secure New Zealand’s energy future. Having invested more than $1bn in the past five years, we have a further $2bn planned for investment over the next three years. These projects will add over 1,000MW of new capacity, a five percent increase to the electricity system.”
The JV between Meridian and Nova, initially announced in December 2024, has entrusted the construction and initial operations and maintenance to Beon Energy. This partnership not only underscores the commitment to renewable energy but also sets a precedent for future collaborations in the sector.
The development of the Te Rahui solar farm and Meridian’s broader project pipeline could significantly shape New Zealand’s energy sector. By increasing the share of renewable energy in the grid, these initiatives may drive down electricity prices, enhance energy security, and reduce carbon emissions. Moreover, the collaboration between Meridian and Nova demonstrates the potential for strategic partnerships to accelerate the transition to a low-carbon economy. As the energy sector evolves, such collaborations and investments will be crucial in meeting the growing demand for clean, reliable, and affordable energy.