The capital market for solar energy development continues to heat up with the latest funding announcement from New Zealand-owned company Lightyears.
The company has secured $174 million of funds – $100m from Australian investors and the remaining $74m from Obayashi Corporation in Tokyo.
The Australian partner company InfraDebt is a leading infrastructure private debt company specialising in energy transition, with over 80 projects underway and AU$1 billion invested in the sector.
Obayashi is listed on the Tokyo stock exchange and develops renewable energy projects in Japan and overseas. The investment sees Obayashi take a 90% stake in a new company, LYOC1, specialising in solar projects.
Lightyears’ project portfolio includes a 14MW project in Reefton nearing completion. It is also a partner in the construction of a 15MW site near Kuratau in central North Island, working with eight local Māori land trusts constructing a 23.5 GWh project to power 3300 homes, due for completion in mid-2027.
This project is backed by a 12-year energy purchase agreement with Fonterra.
New ground is due to be broken near Ashburton on a 6MW site to be connected to the local network.
“This capital gives us a clear runway to deliver power projects up and down the nation. And that level of capital injection allows us to take on more projects concurrently.
“We’ve also created ways for a wide range of partners to take part, such as our co-investment with Māori investment groups and large energy users,” said InfraDebt co-founder Chin-Lee Yu.
Lightyears’ investment comes hard on the heels of the listing on October 22 of solar energy company Lodestone Energy.
In what was the first publicly listed offering on the NZ board since My Food Bag five years ago, Lodestone had 10,000 new retail and institutional investors commit $75m, helping fund its development pipeline and expand its electricity customer base.
Its operating sites include panels in Kaitaia, Edgecumbe, Waiotahi and Coromandel, and in Clandeboye in South Island. Development projects include the fast-tracked Mackenzie Basin project on Haldon Station, and projects in Dargaville, Bunnythorpe and Mount Somers.
Solar companies continue to quietly acquire lease rights to farmland throughout New Zealand.
Farmers Weekly recently revealed NZ Clean Energy’s plans for a large solar farm on a 1000ha block in North Canterbury.
Estimates are nationally about 10,000ha of land has been consented for conversion, is under construction, or going through the fast-track consenting process for solar generation.
Estimates are for a further 10,000-20,000ha of land to be destined for solar installations.
Colliers is also advertising a 90ha block on Mangamaire Road in Tararua for sale with a 35-year ground lease already in place for a solar farm generating $396,000 a year.
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