KEY POINTS:
New Zealand Windfarms has struck a deal with Powerco to build new transmission assets connecting Te Rere Hau wind farm to the national grid.
Electricity and gas distributor Powerco will design, build and own the new transmission assets, leasing them to the Te Rere Hau joint venture.
Powerco said it would reveal more details about the project today.
Te Rere Hau, half-owned by New Zealand Windfarms, will be connected to the TrustPower substation in the Tararua ranges, near Palmerston North.
The wind farm's other owners are NP Power & Babcock and Brown Windpower, who jointly own 50 per cent. It has been operating since September last year and supplies power to the local lines network.
NZ Windfarms chairman Derek Walker said that the deal would remove the cost of building transmission assets, meaning his company could focus on finishing Te Rere Hau's generation and explore new wind farming sites.
In 2007 the listed company completed a $75 million public offering to further Te Rere Hau's development, and the creation of new wind farm projects.
Powerco's acting chief executive, Nigel Barbour, said Powerco wanted to work with generation businesses which were looking for new projects in the North Island.
Powerco's network covers the upper central and lower central North Island, servicing about 400,000 consumers.
Shares in NZ Windfarms closed up 2c to $1.24 yesterday.
- NZPA
