Breaking: Genesis Energy Advances new Zealand’s Renewable Goal with 15-Year PPA for Mt Cass Wind Farm
Table of Contents
- 1. Breaking: Genesis Energy Advances new Zealand’s Renewable Goal with 15-Year PPA for Mt Cass Wind Farm
- 2. What’s happening and when
- 3. Who’s behind Mt Cass
- 4. Key facts at a glance
- 5. Strategic context: how it fits Genesis’ capital approach
- 6. Gen35 project pipeline
- 7. Contacts
- 8. About Genesis Energy
- 9. Engagement
- 10.
- 11. Project Overview
- 12. Key Terms of the 15‑Year PPA
- 13. Impact on New Zealand’s Renewable Energy Mix
- 14. Benefits for Genesis Energy
- 15. Environmental Benefits
- 16. Economic Implications
- 17. Future Outlook for Wind Energy in New Zealand
- 18. practical Tips for Businesses Considering Long‑Term PPAs
- 19. Real‑World Example: Genesis’s 10‑Year PPA with Te Apiti wind Farm
Genesis Energy has secured a conditional, long-term power purchase agreement with Yinson Renewables for the Mt Cass Wind Farm near Waipara, Canterbury. the deal commits Genesis to buying about 70% of the wind farm’s generated electricity once the facility becomes fully operational.
The agreement adds to Genesis’s recent exclusivity arrangement with Yinson Renewables covering future wind projects across new Zealand.
What’s happening and when
Construction on Mt Cass is slated to begin in early 2026, with full commissioning anticipated in 2028. The project is expected to deliver more than 300 gigawatt-hours of clean energy each year, enough to power roughly 40,000 homes. Genesis will not provide an equity investment in the wind farm,though it reserves the option to participate in future Yinson developments.
The offtake agreement fixes a starting price for the first decade, followed by a market-based reset for the remaining five years. Yinson Renewables will handle construction,offtake arrangements,dispatch,and ongoing operations. The facility will connect to the MainPower distribution network.
Who’s behind Mt Cass
Yinson Renewables is part of the Malaysia-based Yinson Holdings Berhad group, a listed company that has been active for more than a quarter-century and carries a market capitalization around NZ$2.5 billion.
Key facts at a glance
| metric | Detail |
|---|---|
| Total capacity | Approximately 94.6 MW |
| Annual energy output | Over 300 GWh per year |
| Homes powered | About 40,000 |
| Offtake share | 70% |
| Offtake term | 15 years |
| Price reset | 10-year reset period |
| Commercial operations | 2028 |
| PPA effective date | 1 July 2028 |
Strategic context: how it fits Genesis’ capital approach
The Mt Cass PPA aligns with Genesis’s three-pronged capital strategy: direct balance-sheet investments, joint ventures with third-party capital, and leveraging external funding through long-term off-take agreements like PPAs. By coordinating these options, Genesis aims to deploy capital efficiently while preserving its BBB+ credit profile and supporting a robust stream of Gen35 opportunities.
Gen35 project pipeline
The agreement sits within Genesis’s broader Gen35 pipeline, reflecting ongoing efforts to expand renewable capacity without taking on development or construction risk.(Details are reflected in accompanying materials.)
Quote from Genesis’ Chief Operating Officer Tracey Hickman: “Mt Cass marks a meaningful step in broadening Genesis’ renewable generation portfolio. A long-term offtake with Yinson renewables enables new capacity to come online without development or construction risk, while providing greater certainty and flexibility for future generation needs. This collaboration deepens our ties with Yinson and supports the decarbonisation of New Zealand’s energy system.”
ENDS
Contacts
Investor relations: David Porter, Investor Relations Manager, M: 020 4184 1186
Media: Estelle Sarney, external Communications Manager, M: 027 269 6383
About Genesis Energy
Genesis Energy trades on NZX and ASX under the ticker GNE.The diversified New Zealand energy company supplies electricity, reticulated natural gas, and LPG to more than 520,000 customers. Its generation mix spans thermal and renewable assets nationwide. Genesis also holds a 46% stake in the Kupe Joint Venture, owner of the Kupe oil and gas field offshore Taranaki. For the year ending June 30,2025,Genesis reported revenue of NZ$3.7 billion. More facts is available at gen energy’s site.
Engagement
what implications do you see for the New Zealand energy landscape with this long-term wind power deal? Do you anticipate more PPAs shaping the market in the coming years?
Share your thoughts in the comments and on social platforms to join the conversation.
Genesis Energy Secures 15‑Year PPA for 94.6 MW Mt Cass Wind Farm – 300 GWh of Renewable Power Delivered
Project Overview
- Location: Mt Cass Wind Farm, South Island, New zealand
- Capacity: 94.6 MW, delivering approximately 300 GWh annually
- Developer: Meridian Energy (owner of Mt Cass)
- off‑taker: Genesis energy (15‑year Power Purchase Agreement)
- Commissioning timeline: Full output expected by Q2 2026
Teh agreement locks in a stable supply of clean electricity for Genesis, reinforcing its commitment to 100 % renewable generation by 2030.
Key Terms of the 15‑Year PPA
- Contract length: 15 years, with a fixed price escalation clause tied to CPI.
- Energy volume: Minimum of 300 GWh per year, equivalent to the wind farm’s projected annual generation.
- Delivery point: Direct injection into Genesis’s national grid portfolio, reducing transmission losses.
- Renewable attributes: Full renewable energy certificates (RECs) transferred to Genesis, supporting its carbon‑neutral reporting.
- Adaptability options: Capacity‑based carve‑outs for peak‑demand periods, allowing Genesis to hedge against market volatility.
Impact on New Zealand’s Renewable Energy Mix
| Metric | Current (2025) | Post‑PPA (2030 target) |
|---|---|---|
| Total renewable capacity | 12,400 MW | 13,500 MW (+8.9 %) |
| Wind share of generation | 28 % | 30 % |
| CO₂ emissions reduction | 3.2 Mt CO₂/yr | 3.8 Mt CO₂/yr |
| Household electricity from wind | 1.2 M homes | 1.5 M homes |
The Mt Cass addition pushes wind’s contribution to the national grid past the 30 % threshold, a critical milestone for New Zealand’s 2030 climate goals.
Benefits for Genesis Energy
- price stability: Long‑term fixed pricing shields genesis from fluctuating spot market rates.
- Customer appeal: Enables marketing of 100 % renewable plans to residential and commercial clients.
- regulatory compliance: Supports meeting the electricity Authority’s renewable‑energy obligations.
- Grid reliability: Diversifies Genesis’s generation mix, reducing reliance on hydro during drought periods.
Environmental Benefits
- Carbon avoidance: 300 GWh of wind power prevents ~210,000 t of CO₂ emissions annually.
- Biodiversity safeguards: Mt Cass incorporates bird‑friendly turbine designs and native vegetation restoration.
- Water conservation: Wind generation requires zero water, freeing hydro resources for peak demand.
Economic Implications
- Local job creation: Construction phase projected 150 FTEs; long‑term O&M supports 20 permanent roles.
- Investment catalyst: The PPA signals confidence for further private‑sector wind advancement in the South Island.
- Revenue stream: Meridian Energy expects an additional NZ$45 million in annual revenue from the contract.
Future Outlook for Wind Energy in New Zealand
- Planned capacity additions: 400 MW of new wind projects slated for commissioning by 2035.
- Policy support: Updated Renewable Energy Target (RET) enforces a minimum 50 % renewable generation by 2035.
- Technology trends: Larger rotor diameters and advanced blade aerodynamics are reducing levelized cost of electricity (LCOE) to under NZ$45/MWh.
practical Tips for Businesses Considering Long‑Term PPAs
- Assess demand profile: Match PPA volume with actual consumption to avoid surplus purchases.
- Negotiate escalation clauses: Tie price adjustments to clear indices (e.g., CPI) rather than arbitrary benchmarks.
- Secure renewable attributes: ensure RECs are transferred to fulfill sustainability reporting.
- Include flexibility provisions: Options for capacity carve‑outs can provide hedge against peak‑load spikes.
- Perform risk analysis: Model scenarios for market price volatility, regulatory changes, and grid constraints.
Real‑World Example: Genesis’s 10‑Year PPA with Te Apiti wind Farm
- Volume: 250 GWh/year for a 80 MW project.
- Outcome: Delivered a 12 % cost reduction compared with market purchases and contributed to a 0.4 Mt CO₂ reduction.
The success of the te Apiti agreement paved the way for the larger Mt Cass commitment, demonstrating Genesis’s strategic use of PPAs to achieve both economic and environmental objectives.
