Contact Energy plans to raise NZ$525 million (US$316 million) in equity funding to fast-track its Contact31+ strategy for its renewable energy and storage pipeline in New Zealand.
The funds will support the development of large-scale renewable energy projects, including a 150MW solar PV power plant, a 200MW battery energy storage system (BESS) and pre-final investment decision (FID) drilling for a geothermal expansion.
The equity raise comprises a fully underwritten placement of NZ$450 million and a non-underwritten retail offer of up to NZ$75 million.
The proceeds will enable Contact Energy to advance its renewable energy pipeline, which aligns with New Zealand’s broader decarbonisation goals and the anticipated 3-5TWh increase in grid electricity demand over the next five years.
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The equity raise will fund several critical projects, including the Glorit solar PV power plant, a 150MWac project located on the Kaipara Coast near Auckland.
Developed through a 50/50 joint venture with Lightsource bp, the solar plant is expected to cost NZ$305 million and will be operational by Q3 2028. The project will be more than 70% project-financed, with funding arrangements nearing completion.
The funds will also support the Glenbrook battery 2.0, a 200MW/400MWh BESS near Auckland, which is estimated to cost NZ$235 million and will double the battery capacity at the Glenbrook site to 300MW. Tesla has been selected to supply its Megapack 2 XL technology, with construction set to begin immediately and completion expected in Q1 2028.
Additionally, Contact is advancing pre-FID drilling for the Tauhara 2 geothermal project, which could expand capacity from 50MW to 60–70MW. The NZ$30 million drilling program will refine reservoir modelling and confirm steamfield development potential, with a final investment decision targeted for FY27.
Contact Energy recorded that it is already making significant progress on its existing renewable energy projects. The Kōwhai Park solar PV plant, a 150MWac project again developed with Lightsource bp, is on track for completion by the second quarter of 2026, with more than 50% of the solar modules installed.
Additionally, the 100MW Glenbrook-Ohurua BESS is nearing completion, with commissioning underway and operations expected to begin in the first quarter of 2026.
The Te Mihi Stage 2 geothermal plant, a 101MW development, is also progressing on schedule and is expected to be operational by the third quarter of 2027. This plant will provide baseload renewable energy generation to replace output from the ageing Wairakei geothermal station.
Looking ahead, Contact Energy is keen to try and play a leading role in New Zealand’s renewable energy transition.
“Contact is ready to lead New Zealand’s renewable energy future, powering expected market growth and bringing new flexibility to support the system as it transitions,” said chair Rob McDonald.
You can read the full article on PV Tech.
