Foresight expands into New Zealand with acquisition of NZ Clean

Foresight today announced that it has agreed to acquire NZ Clean Energy ("NZCE"), a New Zealand-based renewable energy development platform, with a portfolio of late-stage solar and battery energy storage (BESS) projects and a substantial long-term development pipeline.

Foresight's flagship APAC energy transition strategy, the Australian Renewable Income Fund (ARIF), is acquiring NZCE which is its first investment in the New Zealand market.

Foresight expects total capital commitments to fund the development and construction of the platform's three late-stage solar projects totalling approximately 300MW, to exceed A$500 million, as the projects move into construction during 2026 and 2027.

Development platform

The NZCE platform comprises three ready-to-build solar projects, alongside a broader development pipeline of more than 2GW of solar and battery energy storage projects across approximately fifteen sites.

The acquisition provides ARIF with an established New Zealand development team and a platform to progress the ready-to-build projects into construction, including:

1. Masterton - 89MW AC solar + BESS
2. Darfield - 106MW AC solar + BESS
   
3. Dannevirke - 72MW AC solar + BESS

Beyond the initial projects, the broader development pipeline represents a significant long-term opportunity for further renewable energy and storage development across New Zealand.

Investing in a growing electricity market

The acquisition marks Foresight's entry into the New Zealand energy market and expands ARIF's footprint and set of origination opportunities beyond existing wind, hydro and solar assets across the National Electricity Market in the east coast of Australia and the South West Interconnected System in Western Australia.

New Zealand's electricity market is entering a period of significant structural change, as rising electricity demand and the transition to a low-emissions energy system drive the need for new renewable generation and energy storage.

Total electricity demand is forecast to increase by around 25% over the coming decade, rising from approximately 40 terawatt-hours (TWh) today to around 50TWh by the mid-2030s. The increase is expected to be driven by the electrification of the economy, including the rapid uptake of electric vehicles, the expansion of energy-intensive data centres and the electrification of commercial and industrial processes.

At the same time, the electricity system is expected to see significant growth in renewable generation, with renewables forecast to account for the majority of the energy mix in the coming years. As solar and wind capacity expands, the market will increasingly require flexible generation and energy storage to maintain grid stability and manage variability in supply.

Against this backdrop, Foresight's acquisition of NZCE provides a platform to develop new renewable generation and energy storage projects that can help meet rising electricity demand while supporting the continued decarbonisation of New Zealand's energy system.

Edward Lloyd, Head of Australia for Foresight, commented: "This acquisition further strengthens Foresight's position as a leading investor in the regional energy market, with the scale of our portfolio and our internal capabilities providing a meaningful competitive advantage. We welcome aboard the NZCE team and are excited about delivering the significant pipeline they have created."

Daniel Beaver, Executive Director at Foresight and Portfolio Manager of ARIF, said: "This acquisition represents an important milestone in our growth strategy. New Zealand has an exceptional renewable resource base and a supportive policy environment. By combining our capital and operational expertise with NZCE's local knowledge, development expertise and project pipeline, we are well positioned to accelerate the delivery of new renewable energy capacity."

Harry Simpson, CEO of NZCE, added:"We established NZCE with the ambition of building a serious pipeline of solar and storage projects across New Zealand. Over the past several years we've focused on identifying the right sites and progressing projects through development. Partnering with Foresight allows us to move into the next stage and take advanced projects into construction while continuing to expand the platform."

George Hughes, COO of NZCE, said: "A huge amount of work sits behind projects reaching this stage. The immediate focus is turning this development work into operating projects and starting to deliver new renewable capacity into the New Zealand market."

Building a trans-Tasman renewable platform

The acquisition supports ARIF's broader strategy of combining development capability with long-term capital to build a diversified renewable energy portfolio across electricity markets.

With significant operations across Australia and now New Zealand, Foresight's portfolio spans multiple energy markets providing geographic diversification and supporting the continued build-out of renewable generation and energy storage capacity across the region.