Southern Generation Ltd Partnership (SGLP) — jointly owned by Pioneer Energy, The Power Company and Electricity Invercargill — took ownership of two hydro plants in King Country and one near Gisborne yesterday.
SGLP bought the plants from Waikato’s The Lines Company for $15.5million.
The three sites were all run-of-river schemes and had a combined capability of generating 15-24 gigawatt hours (GWh) annually.
SGLP added two South Island schemes, Upper Fraser and Matiri, late last year. It also owns two wind farms in Otago and Southland and a hydro plant in Bay of Plenty.
SGLP’s managing director and Pioneer Energy’s chief executive Fraser Jonker said the company’s aim was to invest in renewable energy sources.
‘‘Our strategy is to invest and develop renewable energy generation so these ones came on the market and fitted that strategy.
‘‘They are in the North Island, where most of New Zealand’s energy is being used and we also have expertise in running our other asset in the North Island so that gave us confidence that they could fit this under their wing,’’ he said.
Mr Jonker believed investing in the North Island meant it would help diversify from some of the South Island’s energy generation risks.
‘‘For us it is all about having a diverse portfolio. The North Island electricity generation assets are less exposed to the market as a result of the Tiwai closure and the price in the South Island is more impacted by that,’’ he said.
Mr Jonker said the assets would continue to be operated as usual under its portfolio.
He believed it was a great achievement for a locally owned company.
‘‘It’s great a local company, owned by Otago and Southlanders, can go elsewhere in the country and expand the benefit for our community.
The organisation was looking at further investment opportunities in wind and solar energy, Mr Jonker said.
