NZ Clean Energy and Mercury sign long-term PPA for 118 MW Masterton solar and storage project

# Project overview

NZ Clean Energy (NZCE), a Foresight portfolio company, and Mercury NZ Ltd have signed a long-term power purchase agreement (PPA) for the Masterton solar and energy storage project in the Wairarapa region. The PPA gives Mercury the right to purchase the renewable electricity produced by the development once it is operational.

# Capacity, output, and local impact

The Masterton project is a 118 MW solar-plus-storage development designed to produce about 190 GWh of renewable electricity each year, which the article equates to the energy needed by roughly 27,000 homes—more than the number of homes in the Wairarapa. The project is sited near Masterton and integrates energy storage to improve dispatchability.

NZCE plans to maintain existing farming activity on the site: sheep grazing will continue across the project footprint during operations. The developer also projects tangible local economic benefits, estimating the creation of more than 100 construction jobs during the build phase.

# Why the PPA matters

The long-term PPA provides revenue certainty that supports financing and construction of a large-scale renewable project. NZCE frames the agreement as validating the role of independent renewable developers in New Zealand's energy system and as a mechanism for attracting investment into new generation capacity.

Mercury describes the deal as its first major grid-scale solar PPA. The company positions the new solar output as complementary to its existing hydro, wind, and geothermal assets, and as a way to increase diversity and resilience in its renewable portfolio.

# Project development status and timeline

NZCE has begun early site works and is in the final stages of contractor selection. After appointing a contractor, the company will move to mobilisation and installation, with full construction scheduled to start early in the next calendar year. NZCE says it has already engaged several local contractors across different roles and intends to continue building local supplier relationships through construction.

# Stakeholder engagement and land use

From project inception NZCE has engaged with landowners, community representatives, and other stakeholders to shape the development. The developer emphasizes ongoing dialogue and local partnerships during both construction and operations.

NZCE senior managers highlighted that the PPA with Mercury is a significant step for the project and for independent developers seeking to bring new generation online. Mercury's wholesale executive noted the agreement supports their strategy to add solar capacity alongside hydro, wind, and geothermal, and to bolster system resilience.

# Bottom line

Mercury secures a route to market for a 118 MW solar-plus-storage project near Masterton that aims to deliver about 190 GWh per year, keep sheep grazing on site, create over 100 construction jobs, and begin main construction early next year pending contractor appointment. The agreement is positioned as both a commercial enabler and a contribution to New Zealand's renewable generation mix.