Genesis signs up to 20-year supply agreement for Tilt-built Waverly wind farm
By Paul McBeth
May 17 (BusinessDesk) - Genesis Energy and Tilt Renewables have signed a 20-year supply agreement, laying the foundation for the construction of a 31-turbine wind farm in Waverley, South Taranaki.
The power companies finalised the deal, which will see Genesis buy all energy produced at the 130-megawatt wind farm - expected to be 450-460 gigawatt hours a year - for two decades, including generation during commissioning.
Construction is expected to start in the next six to nine months, with commercial operations targeted for September 2021. Resource consent for the 980-hectare site was granted in July 2017.
"The Waverley wind farm comes at a price that is competitive with other forms of baseload electricity, which is particularly important as we meet demand from the transport and industrial heating sectors looking to electrify in the coming years," Genesis chief executive Marc England said in a statement.
The power companies have agreed to a starting price, which hasn't been disclosed, for the first 10 years of the deal, with regular resets in the second 10 years.
Tilt will own and operate the wind farm. At its annual earnings announcement last week, the company said credible contractors had been shortlisted and a decision is expected in the December quarter.
Genesis and Tilt announced the partnership for the Waverley wind farm in October. It's the first project of a wider plan to develop more renewable energy generation.
For Genesis, securing supply from the windfarm is a way to increase its generation from renewable energy, and meet its goal to stop burning coal at the Huntly plant by 2030.
Genesis shares last traded at $3.10 and are up 19 percent so far this year, while Tilt was last at $2.35, a gain of 14 percent.