Genesis (NZX:GNE): What steps has it taken towards solar development?

3 min read | November 23, 2021 02:25 PM AEDT | By Sonal

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Genesis (NZX:GNE): What steps has it taken towards solar development? — Image source: PavelNovakUA,Shutterstock.com

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Highlights

Genesis wants to create grid-scale solar as part of the Company’s Future-gen strategy.

The Company has targeted to deliver up to 500MW of solar capacity over the succeeding 5 years.

GNE partnered with an Australian solar farm developer FRV Australia this month for solar development.

Genesis Energy Limited (NZX:GNE; ASX:GNE) is a major electricity producer, transporter and retailer in New Zealand.

Genesis reported a strong financial performance in FY21. This was led by sustained growth in the Retail segment and by delivering seasonal backup energy amid gas supply scarcities and low hydro inflows.

GNE has committed to an ambitious Science-Based Target to remove 1.2 million tonnes of annual carbon emissions by 2025.

To reach this commitment, Genesis has undertaken 3 major power purchase agreements (PPAs) and revealed a plan to co-develop 500 MW of solar capacity over the next 5 years as part of its Future-gen strategy.

GNE plans to create grid-scale solar as part of the future-gen program. The Company has selected 2 international solar developers and is deciding the conditions of a joint venture.

ALSO READ: Contact (NZX:CEN): How would NZ become a 100% renewable electricity market?

GNE has targeted 500MW of generation by 2025, some of which will be produced on Genesis-held land near current grid connections.

Genesis forges partnership with FRV Australia

Genesis partnered with Australian solar farms developer, FRV Australia, this month to fulfil its objective of becoming a major developer of solar generation. FRV’s capability in developing worldwide utility-scale solar projects will help GNE in fulfilling its target of delivering up to 500MW of solar capacity over the succeeding five years.

Genesis will own a 60% stake in the joint venture with FRV Australia.

The collaboration will produce 750 GWh pa, which will be enough to power 100K households or 185K EVs every year. The Company is majorly targeting North Island as the location for solar developments though it will be confirmed in early 2022.

Genesis had set a goal of displacing 2650GWh of fossil fuel power generation with new renewable energy by 2030. This was followed by committing to 3 PPAs that included the opening of the Waipipi Wind Farm, PPA, to enable the construction of the Kaiwaikawe windfarm in Northland over the next 3 years and PPA to get power from the Tauhara geothermal plant being built near Taupō.

On 23 November, at the time of writing, GNE was trading at $2.94, up 0.68%.

Bottom Line

Developing solar capacity is part of Genesis’ plan to lower its carbon emissions from power production by 36%.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)

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