Foresight Group, a UK-based investment manager, has signed an agreement to acquire NZ Clean Energy (NZCE), a renewable energy development platform in New Zealand.
The acquisition is being made through the Australian Renewables Income Fund (ARIF), Foresight’s energy transition strategy in the Asia-Pacific region.
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It marks ARIF’s initial investment in the New Zealand market, with an investment amount exceeding A$500m ($357.8m).
This capital is aimed at supporting the development and construction of around 300MW of late-stage solar projects, commencing in 2026 and 2027.
The acquisition provides ARIF with a development team in New Zealand and a platform to advance projects ready for construction.
These projects include a solar and battery energy storage system of 89MW-alternating current (MWac) in Masterton, another of 106MWac in Darfield and a 72MWac system in Dannevirke.
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By GlobalDataIn addition, NZCE boasts a broader development pipeline exceeding 2GW across roughly 15 locations in New Zealand.
This presents a substantial opportunity for further renewable energy and storage developments.
NZCE CEO Harry Simpson said: “We established NZCE with the ambition of building a serious pipeline of solar and storage projects across New Zealand.
“Over the past several years, we have focused on identifying the right sites and progressing projects through development.
“Partnering with Foresight allows us to move into the next stage and take advanced projects into construction while continuing to expand the platform.”
Foresight’s entry into the New Zealand market marks a strategic expansion beyond its current holdings in the National Electricity Market on Australia’s east coast and the South West Interconnected System in Western Australia.
The New Zealand electricity market is currently experiencing structural changes driven by increased demand and a shift towards low-emission energy solutions.
Predictions indicate a 25% rise in electricity demand over the next decade, spurred by factors such as the adoption of electric vehicles and the growth of data centres.
This market transition necessitates new renewable generation and storage solutions, with renewables set to dominate the energy mix shortly.
Foresight’s acquisition aims to develop projects that address increasing electricity demand while facilitating the country’s decarbonisation efforts.
This aligns with ARIF’s strategy to create a diversified renewable energy portfolio through combining development capabilities with long-term investment across regional electricity markets.
Foresight Australia head Edward Lloyd said: “This acquisition further strengthens Foresight’s position as a leading investor in the regional energy market, with the scale of our portfolio and our internal capabilities providing a meaningful competitive advantage.
“We welcome aboard the NZCE team and are excited about delivering the significant pipeline they have created.”
