Australia and Japan Invest $A139m in Kiwi Solar Developer Lightyears
New Zealand-based developer Lightyears has successfully secured a substantial $NZ174 million (approximately $A139 million) financing agreement aimed at advancing 28 solar and battery initiatives over the next five years.
This funding package comprises a $NZ74 million equity investment provided by Japan’s Obayashi Corporation, while the remaining $100 million will be sourced through a loan from Australian lender InfraDebt, which also refinanced the company’s previous 27 megawatt (MW) portfolio last year.
Focus on Small-Scale Solar Initiatives
Lightyears is dedicated to small-scale solar energy solutions enhanced by battery technologies. Currently, they have seven operational projects, ranging from 1 MW to 7 MW, which collectively generate 30.7 MW of renewable energy.
Additionally, the company is engaged in constructing approximately 35 MW worth of projects and boasts a pipeline of 28 larger projects that will have a total capacity of 338 MW.
Vision for New Zealand’s Energy Sector
Managing director of Lightyears, Matt Shanks, expressed enthusiasm about the funding, stating, “This capital gives us a clear runway to deliver power projects up and down the nation. And that level of capital injection allows us to take on more projects concurrently.”
Shanks further emphasised the company’s mission to assist New Zealanders and the renewable energy industry, asserting that this influx of capital would contribute to lowering energy costs for both individuals and businesses across the country.
Investment from Japanese Partners
Obayashi Corporation, which is listed on the Tokyo stock exchange, identifies New Zealand as a priority market, alongside Japan. The corporation will acquire a 90 per cent stake in a newly established solar holding entity, named LYOC1, with their investment phased as individual projects achieve development milestones.
InfraDebt’s Role in Financing
Chin-Lee Yu, co-founder of InfraDebt, has expressed a positive outlook on the New Zealand market, noting that the lender has backed over 40 distribution-connected renewable projects in the last 13 years. InfraDebt’s recent contributions will also facilitate the Clean Energy Finance Corporation’s latest $100 million financing package intended for 16 hybrid solar battery projects, which was announced in August.
Local Investment Opportunities
Lightyears is not only securing major investments but is also seeking local investment opportunities. Eight Māori investor groups are collectively providing capital to launch the 15 MW Te Aho o te Rā solar project located near Lake Taupo, in the heart of the North Island.
Collaborations with Māori Tribes
Forming partnerships with Māori iwi is emerging as an effective strategy for Australian developers looking to establish themselves in New Zealand. For instance, Mint Renewables, co-founded by New Zealand infrastructure investor Infratil, entered a strategic alliance with the Ngāi Tahu tribe last year to engage in the development of utility-scale renewable energy projects.
