Herbert Smith Freehills Kramer (HSF Kramer) has advised Nova Energy Limited (Nova), a major generator and retailer of electricity in New Zealand and subsidiary of Todd, on Stage 1 of the Te Rahui Solar Farm (200 MW capacity) near Rangitāiki, east of Taupō, in New Zealand's North Island (the Project).
The Project is being developed as part of a joint venture between Nova and Meridian Energy Limited (Meridian). Beon Energy has been engaged to construct the Project under an EPC Contract and provide maintenance services during operations under an O&M contract. The Project offtake will be shared 50-50 by way of a power purchase agreement with Meridian for 100% of the offtake and a contract for difference with Nova for 50%. Nova's asset management team will continue to support the construction and operational delivery of the Project via a Construction and Asset Management Agreement.
ANZ Bank New Zealand Limited, Bank of New Zealand, Commonwealth Bank of Australia, MUFG Bank Ltd and Westpac New Zealand Limited have provided a NZD $300 million project financing package for the Project.
Todd Group CEO, Evan Davies, said, "this milestone reflects years of mahi (work) and a shared commitment to delivering large-scale renewable infrastructure that supports New Zealand's energy transition". The Te Rahui Solar Farm is being delivered in two stages, with Nova and Meridian working to progress another 200 MW facility under the joint venture. Nova has commented that "Te Rahui is a legacy project – one that honours the whenua, strengthens energy resilience, and supports biodiversity and community outcomes".
Lead procurement partner, Toby Anderson, said, "achieving financial close and commencing construction on the Te Rahui Solar Farm is a landmark milestone for Nova and Meridian and an exciting step for large-scale solar development in New Zealand. We're proud to have supported Nova — both in achieving this milestone and in its ongoing commitment to advancing New Zealand's energy transition."
Gerard Pike, HSF's lead finance and offtake partner on the matter, added, "it was great to help Nova and Meridian achieve great terms and financial close on this greenfields limited recourse project financing, which is one of the largest renewable energy project financings in New Zealand to date. This deal is a testament to the Sponsors' persistence and ambition and demonstrates a liquid project finance market for well developed renewable energy projects with well structured PPAs in New Zealand."
The cross-practice energy and finance teams were led by partners Toby Anderson, Gerard Pike and Jon Evans. They were supported by senior associates Josh Attard, Elise Bulla and Tia Liu, solicitors Yonnie Lipshatz, Holly McNaughton and Sam Walker and graduates Rhiannon Ong-Halleron and Laeticia Garrett.
The transaction involved a collaborative effort with HSF Kramer as lead counsel advising Nova and the Project, Chapman Tripp as New Zealand counsel advising Nova and the Project, Anderson Lloyd advising the lenders, Russell McVeagh advising Meridian and MUFG Advisory as financial advisor for Nova and the Project.
This deal is another example of HSF Kramer's market-leading work in the renewable energy sector in the region. Other recent examples in these sectors include our firm advising:
- AGL on the development of the 500 MW / 2,000 MWh Tomago BESS in the Hunter region of NSW.
- Atmos Renewables on the development of the 100 MW / 400 MWh Merredin BESS in the Wheatbelt region of Western Australia.
- Equis on the development and financing of the 250 MW / 500 MWh Calala BESS in Tamworth, New South Wales.
- EnergyAustralia on its development of the 350 MW / 1400 MWh Wooreen Battery Energy Storage System in the Latrobe Valley, Victoria.
- METLEN Energy & Metals on the portfolio financing of its Terranova 1, Terranova 2 and Munna Creek solar farm projects in New South Wales and Queensland.
- The international syndicate of lenders on the A$750 million green portfolio financing for ACEN Australia's clean energy projects.
- the syndicate of lenders on the project financing of Eku Energy's 250MW/500MWh Big Canberra Battery energy storage project.
- the lenders on the financing of Akaysha Energy's Ulinda Park BESS project.