Resources
Foreign investment in Aotearoa/New Zealand
Overseas Investment Office - May 2024 Decision
Solar Farms
This is a recent example of the steady growth of solar farms throughout the country. This is a new form of energy but there is a major difference from the creation of older means of energy generation in NZ - there is no involvement by the State, it is being left to the market, primarily transnational corporations. In this case the OIO approved First Renewables Power Limited, Australia 51%, Canada 26%, Japan 15%, United States of America 6%, Various 2%; Harmony Energy Limited, United Kingdom 72%, New Zealand 28% and Harmony Energy NZ Limited, United Kingdom 36%, Australia 26%, New Zealand 14%, Canada 13%, Japan 7%, Various 4%, making the acquisition of up to 100% shares in Harmony Energy NZ Limited and acquisition of an estate or interest (other than freehold) of up to 35 years in:
- approximately 262.4387 hectares of land located at 241 Mikkelsen Road and 30 Alexander Road, Te Aroha; and
- approximately 121.1069 hectares of land located at McKinley, Alexandra and King Roads, Te Aroha (Land).
The vendors were Tauhei Farms Limited, New Zealand 100% and Schuler Brothers Limited New Zealand 100%. The price was listed as "more than $100m". To quote the OIO: "Harmony Energy Limited is a UK company engaged in developing renewable and battery energy storage systems in the UK and parts of Europe. Harmony Energy NZ Limited is a joint venture between Harmony Energy Limited and, through First Renewables Power Limited, First Sentier Funds which is managed by First Sentier Investors, a global fund manager which invests in economic infrastructure assets".
"Harmony Energy Limited intends to develop, construct and operate solar farms across New Zealand. A consent under the Act was previously granted (in February 2024) in relation to a solar farm to be located on the Land, with an anticipated capacity of 200MW, which is enough to power approximately 52,000 homes a year, by 2026".
"The Land is currently used for dairy and sheep farming, until the development of the solar farm is commenced. First Renewables Power Limited and Harmony Energy Limited have been granted consent to increase their existing interests in Harmony Energy NZ Limited. Harmony Energy NZ Limited has also been granted consent to acquire the Land with a different ownership structure to that which the February 2024 Decision allows it to".
"The main benefits to New Zealand are economic benefits as the investment is likely to deliver better energy security; and to ensure the solar farm is developed, constructed and made operational in a timely manner, thus preventing having stranded assets. The investment also aligns with Government renewable energy policy. Consent was granted as the Applicants met the investor test criterion and the investment is likely to result in benefit to New Zealand".
Upset Neighbours
Not everyone is happy about having a shiny new solar farm next door and grumbles are being heard around the country. For example, in Auckland province (Stuff (22/2/24, Torika Tokalau), "Residents of a quiet rural south Auckland community say they are devastated a solar farm has been given the green light for development without any public consultation". One neighbour said: "Many of the owners have been in this location for over 30 years and chose to reside here because of the beautiful rural outlook which will now been destroyed".
And, in Canterbury (Otago Daily Times, 23/5/24, Daniel Alvey), "A petition earlier this year (2024) indicated about 100 residents were opposed to the application, but only eight could submit against it because it was a limited notified resource consent, meaning only people directly affected could make submissions". This trend will only continue as more solar farms are built.
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Campaign Against Foreign Control of Aotearoa,
P.O. Box 2258
Christchurch.