8 hours ago
Stewart Island solar farm to fight high power prices gets funding
Solar panels at Kaiwaiwai Dairies.
Photo:
RNZ/Sally Round
The government is providing $15 million for a solar farm on Stewart Island with the hope of reducing steep power prices.
The suspensory loan from the Regional Infrastructure Fund of up to $15.35 million will go to Southland District Council to build the first stage of a solar farm and network upgrades.
Stewart Island currently relies on
high-cost diesel generators
for its power supply.
Associate Regional Development Minister Mark Patterson said the project should lead to considerable savings for residents.
The Rakiura/Stewart Island project was expected to reduce diesel consumption by 200,000 litres within two years of beginning.
The Regional Infrastructure Fund would also provide loans to two other solar projects.
Lines company Centralines Ltd in Hawke's Bay will receive a loan of up to $8 million to build a 35 hectare solar farm in Ongaonga. The solar farm will generate 52 gigawatts annually and provide about 9000 electricity connections in Central Hawke's Bay.
In the Bay of Plenty, Te Huata Charitable Trust will receive a loan of up to $4.75 million to build a solar farm at Te Kaha. It will provide an electricity supply for about 320 homes and businesses in an area which regularly suffers electricity outages.
It will also have storage capacity for up to 72 hours.
"The loans for these projects in Bay of Plenty, Hawke's Bay and Rakiura/Stewart Island will allow them to get under way this year, helping them to improve economic prosperity and resilience," Regional Development Minister Shane Jones said. "They will also create up to 150 jobs during construction."
Patterson said solar power was playing an increasingly important role in increasing electricity generation in New Zealand.
"It will help us reach our renewable energy targets and bolster the security and affordability of our energy supply."
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