NZ Clean Energy and Fonterra announce long-term PPA for Darfield solar and energy storage farm
The agreement represents one of New Zealand’s first large-scale solar PPAs between a major industrial energy user and an independent renewable energy developer.
The Darfield Solar and Energy Storage Project is a 129 MW development located near Fonterra’sDarfield manufacturing site in Canterbury and is designed to generate approximately 218 GWh of renewable electricity annually. The PPA will provide the Co-operative with flexible, cost-effective access to renewable electricity and help manage electricity price risk at its Darfield site and other manufacturing operations in the region.
The solar project has been designed to enable continued sheep grazing across the project site, preserving the land’s agricultural character and reflecting NZCE’s commitment to responsible, low-impact renewable energy development. During construction, the project is expected to create more than 100 jobs, contributing to regional economic growth in Canterbury alongside New Zealand’s broader renewable energy ambitions. NZCE has placed value on working closely with the local community, landowners and stakeholders throughout the development of the Darfield project, and the relationships built along the way have meaningfully shaped the project. That commitment to engagement will continue as the project moves into the next phase.
Supporting renewable power generation
Fonterra is investing in new capital projects to transition away from fossil fuels to renewable energy sources as part of its broader decarbonisation strategy. The Co-operative is committed to supporting the development of new renewable power generation in New Zealand to promote new supply, improving security of supply and encouraging the ongoing decarbonisation of New Zealand’s electricity sector.
Anna Palairet, Chief Operating Officer, Fonterra said: “We’re committed to creating a more sustainable future and have a role to play in supporting new renewable energy supply in New Zealand. Solar is a good fit for our operations, with generation aligning well to the peak of the milk season. This agreement helps bring new generation to market while at the same time giving us long term price certainty.”
A replicable model for New Zealand’s energy transition
For NZCE, the Darfield project represents more than a single development — it establishes a framework the company intends to replicate across its growing portfolio of renewable energy projects throughout New Zealand. By partnering directly with large energy users through long-term PPAs, NZCE is developing a model that provides the contractual certainty needed to finance and build new renewable generation, while offering corporate electricity users a credible, competitively priced pathway to meeting their own
sustainability goals.
NZCE sees agreements of this kind as central to unlocking private investment in New Zealand’s renewable energy infrastructure — reducing reliance on the spot market, accelerating project delivery, and deepening the relationship between developers and the industries they power. Fonterra, with its significant energy demand across multiple South Island sites, is an ideal long-term partner through which to develop and mature this model.
“This partnership with Fonterra marks a significant milestone for NZCE and for the broader New Zealand renewable energy sector,” said Harry Simpson, Chief Executive Officer of NZCE. “Long-term agreements of this kind are exactly what’s needed to unlock investment in new renewable generation they give developers the certainty to build and give industrial customers a credible, cost-effective path to sourcing renewable energy. Fonterra has shown real leadership in pursuing that, and we’re proud to be their partner in delivering it.”
George Hughes, Chief Operating Officer of NZCE, added: “Darfield is exceptionally well-positioned – strong grid connectivity, direct proximity to major industrial demand, and future battery storage capability that will only grow in value as the energy system evolves. Securing a long-term offtake with Fonterra validates the project and the model. We intend to replicate this approach across our portfolio, and Darfield is the blueprint.”