New Zealand: Lightsource bp secures NZ$267m financing package for Kōwhai Park solar farm

• Lightsource bp and its joint-venture partner, Contact Energy (Contact), secure NZ$267m financing on 168MWdc Kōwhai Park solar farm at Christchurch Airport.
• Financing for the project was secured from Westpac New Zealand, Mizuho, China Construction Bank and Intesa Sanpaolo – IMICIB.
• Construction is set to begin in late 2024 and the project is expected to be completed in 2026.

Christchurch, New Zealand – Lightsource bp, a global leader in the development and management of solar energy projects, has secured NZ$267 million* of financing on its 168MWdc Kōwhai Park solar project located in Christchurch, New Zealand.

This will be one of New Zealand’s largest solar farms with around 300,000 solar panels. The project is being developed in partnership with Contact and is the first phase of Christchurch Airport’s renewable energy precinct, Kōwhai Park.

Financing for the project has been secured from Westpac New Zealand, Mizuho, China Construction Bank and Intesa Sanpaolo – IMICIB.

Adam Pegg, Managing Director, Lightsource bp APAC, said: “This project at Kōwhai Park is our first to reach this stage in New Zealand, and we are proud to have developed such strong synergies with our partners Contact and Christchurch Airport as we help progress New Zealand’s decarbonisation.

“Reaching this point on a project in a new country for the first time is a significant milestone. Through this project, Contact has proven to be a fantastic partner, and we have built a strong relationship. We look forward to working closely together on our future projects,” Adam Pegg said.

Mike Fuge, Contact Energy CEO said: “Contact is thrilled to have confirmed investment of our first solar farm with our JV partner Lightsource bp. The solar farm will also be our first generation asset in the Canterbury region, increasing our geographical spread across the country.

“This news comes just weeks after our announcement to build grid-scale battery in South Auckland and provides further proof of our investment in renewable energy in Aotearoa New Zealand.”

Justin Watson, Christchurch Airport Chief Executive, said: “It’s great to see our partners Contact Energy and Lightsource bp ready to develop Stage 1 of Kōwhai Park. We’re also grateful to Orion, Environment Canterbury and Airways for helping us reach this milestone. Kōwhai Park highlights our commitment to support decarbonisation through creating a green energy hub that will fuel the region’s economic prosperity.”

With construction starting in late 2024 and commercial operations expected to begin in 2026, the Kōwhai Park solar farm will generate over 275GWh per year once completed. This is equivalent to the annual demand of approximately 36,000 homes.

The debt package has been structured as a green financing loan, with Westpac, Mizuho, China Construction Bank and Intesa Sanpaolo jointly underwriting the package. A green financing loan is where the funding is earmarked by lenders for renewable energy projects that help advance the energy transition.

Engineering, procurement, and construction contractor CHINTEC has been engaged to undertake the construction of the solar farm, and Ventia will be delivering all network connection infrastructure.

The joint venture partnership between Lightsource bp and Contact Energy has further plans to progress its solar portfolio in New Zealand, which includes a 175MWdc solar farm in Glorit on the Kaipara Coast northwest of Auckland, and a 160MWdc solar farm in Taranaki, adjacent to Contact’s Stratford power station.

*Bank facilities have been executed, with remaining conditions precedent to be fulfilled. The final figure is approximate and subject to change.