Farmland being eyed for solar power projects

FARMING THE SUN: Overseas interests are increasingly looking to buy New Zealand land for solar power projects. Image supplied

New Zealand is seeing an increase in overseas investors wanting to build solar power farms and Gisborne is one area investors are looking at.

The Herald understands at least one overseas company is considering aquiring farmland both here and in other New Zealand locations, and Land Information NZ said inquiries from overseas were on the rise.

“There has been an increase in inquiries from overseas investors wanting to buy land for solar farms,” a LINZ spokeswoman said.

“Over the past year we've received inquiries from a number of overseas investors looking to invest in solar-powered farms. Prior to that, we had not received any applications and very few inquiries.

“We have received a total of five applications, two of which have been granted.

“A decision summary for one of the granted applications (a 15.8ha site in the Far North) is available on our website, while the second decision summary will be published at the end of December.

“Decisions are yet to be made on the other three applications.

“We have also granted two advertising exemptions in relation to solar farming, one of which has been published. The second is yet to be published.”

LINZ has also granted Aquila Capital SG Holdco's Far North project an exception to farmland-advertising regulations.

The purpose of the requirement to advertise farmland is to give New Zealand investors an opportunity to try to acquire farmland.

However, an exemption from this requirement may be granted if the decision-maker considers that the overseas investment need not meet this requirement by reason of the circumstances relating to the particular overseas investment.

In the Aquila Capital case, LINZ said an exemption was appropriate and desirable as it was a leasehold interest only. (The acquisition of a freehold interest must still be advertised.)

It also said the freehold ownership of the land would not change as a result of the transaction, and any future sale of the freehold to an overseas person could only occur after being offered for sale on the open market.

“Solar farming is a temporary use of the land, and the land can revert to an exclusively farming use at the conclusion of the lease,” the LINZ decision stated.

“There are commercial considerations that make advertising less practical for solar farm developments than for other developments, and the exemption is consistent with the principle that overseas investment should benefit New Zealand, noting the high importance the Government places on renewable energy.”