Genesis Energy Announces New Solar Farm Acquisition in Bay of Plenty
GNE (GNE) Share Update August 2024 Wednesday 14th
Genesis Energy Secures New Solar Farm Site in Bay of Plenty
Genesis Energy has taken a significant step in its renewable energy strategy by securing a 127 MWp solar farm site near Edgecumbe in the Bay of Plenty, set to generate electricity by 2026.
Instant Summary:
- Genesis Energy secures a 127 MWp solar farm site near Edgecumbe.
- The site is expected to start generating electricity in 2026.
- The project will generate around 230 GWh annually, enough to power 30,000 houses.
- Construction workforce will include around 100 people, with up to five staff when operational.
- The project is part of Genesis' Gen35 strategy to achieve 95% baseload renewable generation by FY35.
Project Details
Genesis Energy has made a significant advancement in its renewable energy strategy by securing a 127 MWp solar farm site near Edgecumbe in the Bay of Plenty. The site, acquired from Helios Energy, is expected to start generating electricity by 2026.
The agreement with Helios Energy is anticipated to go unconditional in Q2 FY25. The site is well-positioned, connecting to an existing substation, and will be wholly owned by Genesis Energy. The final investment decision (FID) will determine whether the project will be developed on balance sheet or through another structure.
Technical Specifications
The 207-hectare site will house approximately 220,000 solar panels and is expected to generate around 230 GWh of renewable electricity annually, sufficient to power about 30,000 homes. The project will require a construction workforce of around 100 people and will employ up to five staff once operational.
The site is already consented, with grid connection agreements in place. The FID is expected in mid-CY25, followed by the commencement of construction.
Strategic Importance
This acquisition is a key milestone in Genesis Energy's Gen35 strategy, which aims to achieve 95% baseload renewable generation by FY35. This strategy will free up to 1,400 MW of generation capacity at Huntly Power Station, supporting the country's energy security. Huntly will offer a range of generation assets and fuels to store energy for electricity generation from a minute to a month.
This is the second advanced solar site Genesis has secured, following the acquisition of a 63 MWp site at Lauriston on the Canterbury Plains in November 2023. The Lauriston site is currently under construction and is on track for first generation later in 2024. Other greenfield solar projects are also in the development pipeline.
Statements from Key Figures
Chief Wholesale Officer Tracey Hickman stated, 'We’re delivering strategy through a combination of joint venture, balance sheet finance, and power purchase agreements. We’ve seen through our experience at Lauriston the benefit of purchasing advanced developments and turning them from bragawatts into megawatts. With a large and diverse customer base, Genesis can take opportunities for new renewables and deliver them to market quickly, while we continue to explore other sites and possibilities.'
Helios Energy Founder and Managing Director Jeff Schlichting added, 'We’re pleased with this transaction and our counterparty. Edgecumbe is a high-quality solar development, and Genesis is well-positioned to responsibly deliver it for the benefit of Aotearoa New Zealand and our national decarbonisation commitments.'
The acquisition of the Edgecumbe solar farm site is a positive development for Genesis Energy, reinforcing its commitment to renewable energy. This move is likely to bolster investor confidence in the company's long-term strategy and could positively impact its stock price. The project aligns with global trends towards renewable energy and sustainability, potentially attracting environmentally conscious investors.
Investor Reaction:
Analysts are likely to view this acquisition favorably due to its alignment with Genesis Energy's long-term renewable energy goals. The project's scale and advanced stage of development reduce execution risk, making it an attractive addition to Genesis' portfolio. However, the final investment decision and detailed design processes will be crucial in determining the project's ultimate success and financial impact.
Conclusion:
Genesis Energy's acquisition of the Edgecumbe solar farm site marks a significant step in its renewable energy strategy. Investors should monitor the project's progress and the final investment decision in mid-CY25. This development underscores Genesis' commitment to achieving its Gen35 strategy and enhancing New Zealand's energy security.