NZCE Signs Long-Term PPA With Mercury for 118 MW Masterton Solar Project

NZ Clean Energy (NZCE), a portfolio company of Foresight, has signed a long-term Power Purchase Agreement (PPA) with New Zealand electricity generator and retailer Mercury for renewable electricity generated by its 118 MW Masterton Solar and Energy Storage Project in the Wairarapa region.

The project is expected to generate approximately 190 GWh of renewable electricity annually, enough to supply around 27,000 homes. Once operational, it will add new renewable generation capacity to New Zealand’s electricity system and support rising electricity demand.

The Masterton project has been designed to operate alongside existing agricultural activities, with sheep grazing expected to continue across the site during its operational life. The development is also expected to create more than 100 jobs during construction and provide opportunities for local contractors and businesses.

NZCE has already commenced early works at the site and is in the final stages of selecting the main construction contractor. Following the appointment of the contractor, mobilisation and installation activities will begin, with full construction scheduled to commence early next year.

The company said it has engaged with landowners, community representatives and other stakeholders during the development process and will continue working with local communities and businesses throughout construction and operations.

According to NZCE, the long-term PPA provides revenue visibility to support investment in the project and its progression toward construction. The agreement also marks Mercury’s first major grid-scale solar PPA.

Harry Simpson, Chief Executive Officer of NZCE, said the agreement with Mercury represents a significant milestone for the Masterton project and demonstrates the role independent renewable energy developers can play in New Zealand’s energy transition.

George Hughes, Chief Operating Officer of NZCE, said the project benefits from strong solar resources and access to grid infrastructure, with the potential to integrate energy storage over time.

Tim Thompson, Executive General Manager Wholesale at Mercury, said the Masterton project would complement the company’s existing hydro, wind and geothermal generation portfolio by adding solar generation and increasing portfolio diversity.

The PPA is expected to provide Mercury with access to renewable electricity over the long term while supporting the development of additional generation capacity in New Zealand.