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New Zealand firms join forces in country’s largest corporate renewable energy supply deal

July 23, 2020

Renew Economy:

A group of New Zealand’s largest commercial and industrial energy users, including dairy giant Fonterra, has joined forces to procure what could be thousands of gigawatt-hours a year of renewable electricity via one of the nation’s first and biggest corporate power purchase agreements.

The Renewable Electricity Generation Project, which is being coordinated by the Major Electricity Users Group (MEUG), will seek to buy electricity from a range of new projects, potentially including geothermal, wind, and solar farms.

The companies making up the joint venture include dairy co-op Fonterra, Japan-owned pulp and paper manufacturer Oji Fibre Solutions, Japan-owned forestry and timber company Pan Pac Forest Products, and metals industry companies New Zealand Steel and Pacific Steel.

All told, the businesses represent a combined annual electricity demand of around 2,000GWh, or 2 terawatt-hours (TWh), and the PPA will seek to meet an unspecified proportion of this load.

John Harbord, the chair of MUEG, said the group went to market, on Monday, with a request for proposals to be submitted over the coming six weeks. Responses are due by close of business, Monday, August 31.

Harbord said the main driver behind the joint PPA was for the businesses to use their collective clout to lower NZ carbon emissions to a degree they couldn’t achieve as individual companies.

[Sophie Vorrath]

More: NZ biggest corporate PPA seeks up to 2,000GWh a year of new renewables

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