Genesis Energy is exploring the possibility of adding solar power to its generation portfolio.
Genesis Energy is in discussion with overseas partners on a solar power joint venture. Photo: 123RF
The company said it was in active discussion with overseas partners to finalise a joint venture project to deliver up to 500 megawatts of power over the next five years.
It said this would generate enough energy to power 100,000 households or 185,000 electric vehicles per year.
"Solar makes sense on a number of levels and we believe there is an economic opportunity to develop utility-scale solar projects in New Zealand," Genesis chief executive Marc England said.
"We'll take advantage of key learnings from the recent surge in interest in solar in Australia, particularly equipment selection, cost efficiencies in the installation process and transmission connection risk."
Locations for the potential project are in the North Island and the venture would also consider the possibility of battery storage to ensure there was security of supply in the future, the company said.
Genesis Energy operates the coal burning Huntly Power station, as well as a series of hydro dams. The company also sources wind from other generators.
England said the company was moving quickly to transition to renewable sources of electricity generation.
Genesis had recently partnered with Tilt Renewables on a new windfarm in Northland, which would supply the company with renewable electricity for the next 20 years.
Long term partnership with Contact
Genesis had also signed a renewable power supply contract with Contact Energy.
It would allow Genesis to take up to 62.5 megawatts of electricity from Contact's geothermal power station that is being developed at Tauhara for 15 years from 2025.
The financial details of the deal are confidential.
The $580m project generate a total of 152 megawatts of power and is due to completed by 2023.
Marc England said the agreement would the company deliver on its future generation strategy and remove at least 1.2 million tonnes of annual carbon emission by 2025.
Contact Energy chief executive Mike Fuge said it was fantastic to see support for one of the country's leading renewable projects.
"These sort of long-term commitments, backed by the lowest cost projects, are good for New Zealand as they keep electricity prices as low as possible and encourage the development of new renewable generation," he said.
