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Home / Northern Advocate

Genesis Energy and Tilt Renewables partner in 75MW Northland wind farm

NZ Herald
2 Aug, 2021 05:35 AM4 mins to read

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The proposed wind farm near Dargaville. Image / Supplied

The proposed wind farm near Dargaville. Image / Supplied

Genesis Energy and Tilt Renewables have signed a 20-year electricity off-take agreement for a planned new 75MW wind farm near Dargaville.

The Kaiwaikawe Wind farm (previously known as the Omamari Wind Farm) will cut carbon emissions from Genesis' thermal generation by an estimated 180,000 tonnes a year and during construction will create up to 80 jobs. Tilt Renewables will own and operate the wind farm, 12km northwest of Dargaville

Subject to resource consent, it is expected to be finished by early 2024 and supports Genesis' Future-gen strategy to economically displace base load thermal generation with 2650GWh a year of new renewable electricity by 2030.

It is also well located in a region of Northland that Genesis says will benefit greatly from the development of additional large-scale generation close to key load centres.

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It will be powered by up to 19 turbines.

Resource consents for the project are progressing, with a hearing scheduled for this month and a decision expected later in the year.

Genesis and Tilt partnered in a similar way for the 133MW Waipipi wind farm in South Taranaki.

That project became fully operational in March and is expected to produce approximately 455GWh of renewable generation each year.

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"The partnership between Genesis and Tilt Renewables has changed the face of the electricity market in New Zealand and we are happy to see this next project from our pipeline be included in Genesis' Future-gen strategy," said Deion Campbell, Tilt Renewables chief executive.

Genesis CEO Marc England said the Kaiwaikawe Wind Farm "will help us deliver on both the Future-gen targets and our commitment to remove at least 1.2m tonnes of annual carbon emissions by 2025".

Genesis uses coal and gas to fuel its Huntly Power Station which has been generating at high capacity to meet electricity demand this winter as hydro lakes have been low.

"We understand the role Genesis has to play in the country's transition to a low-carbon future and are looking at other renewable opportunities, including new solar, wind and geothermal generation," said England.

The two companies have an agreed off-take starting price over the first 10 years, with regular market resets for the last 10 years.

Three years ago Genesis and Tilt Renewables formed a strategic relationship for the development of more renewable energy for the New Zealand market.

Earlier today Genesis Energy said it would conduct an independent review after the company unexpectedly lost a significant dispute with a supplier over the carbon liability for gas it buys from the Kupe gas field.

Tilt Renewables' Tararua wind farm. It will partner again with Genesis in Northland. Photo / Supplied
Tilt Renewables' Tararua wind farm. It will partner again with Genesis in Northland. Photo / Supplied

The company said it would take a hit of more than $50 million in the year to June 30 after losing binding arbitration over the dispute with Beach Energy.

New Zealand has 18 operating wind farms with a capacity of 820 megawatts. Genesis' Hau Nui (te reo Māori for "big wind") was the first wind farm built in New Zealand and this year marked its 25th anniversary of operation.

That is a 15-turbine wind farm located in South Wairarapa.

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Tilt Renewables already owns and operates wind farms in New Zealand at Tararua (134 turbines, 161MW), Mahinerangi (12 turbines, 36MW) and Waipipi (31 turbines, 133MW).

Tilt owns and operates renewable generation assets in Australia and New Zealand.

A consortium of Powering Australian Renewables (PowAR) and Mercury NZ has bought Tilt, of which Infratil had a 65 per cent stake.

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