Combined Announcement: Pioneer Generation Ltd, Electricity Invercargill and The Power Company
Pioneer Generation, The Power Company and Electricity Invercargill form new Southern Generation Partnership
Central Otago based Pioneer Generation Ltd (Pioneer), The Power Company Ltd (TPCL) and Electricity Invercargill Ltd (EIL) came together to form a new wind generation investment partnership, being Southern Generation Limited Partnership (Southern Generation). Pioneer will hold a 50% stake in the partnership with the other 50% held by TPCL and EIL.
Pioneer, with head office based in Alexandra, is owned by the Central Lakes Trust. Pioneer develops, owns and operates multiple energy assets (hydro, wind, landfill gas, thermal) assets across New Zealand and provide aggregated energy sales and services to commercial and industrial clients nationwide.
TPCL and EIL own and operated the electricity networks across Southland and parts of Otago. They jointly own PowerNet who operate and manage those networks. The Power Company has over 34,600 connected customers across Southland and West Otago area, TPCL is owned by the consumers connected to the network through the Southland Electric Power Supply Consumer Trust. EIL has over 17,200 connected customers in Invercargill city and Bluff township. EIL is owned by the Invercargill City Council, through its subsidiary Invercargill City Holdings Limited. TPCL and EIL also jointly own the OtagoNet electricity network.
As part of the transaction, Pioneer sold the nine turbine Mt Stuart Wind Farm constructed in 2010 (located south west of Milton) to Southern Generation. The eight turbine Flat Hill wind farm (currently being constructed by Pioneer at Bluff), will also be sold to Southern Generation on completion, currently scheduled around August 2015. Any further development of wind farms in Otago and Southland will be done in the newly formed partnership.
Jason Franklin, CEO of PowerNet and spokesman for EIL and TPCL, says the investment in Southern Generation is a strategic and diversified investment option outside their core electricity lines businesses and with generation as one of Pioneer‘s core areas of expertise, provides a low risk entry position into electricity generation for EIL and TPCL. The two wind farms will generate enough electricity to supply approximately 5000-6000 households and fits well within the geographical electricity network supply areas of TPCL, EIL and OtagoNet
Pioneer’s Chief Executive, Fraser Jonker said that Pioneer has been successful establishing a diversified portfolio of growth opportunities in the wider energy market. Partnering with cultural and strategically aligned businesses is important for Pioneer to continue to develop and grow our own business, leveraging our experience and core expertise.
Jonker continued to mention that wind energy and specific good quality developments like Mt Stuart and Flat Hill, compete very well in the current market and will continue to replace the older non-renewable and more expensive sources of electricity generation into the future.
Pioneer Generation Ltd:
Fraser Jonker, Chief Executive, Pioneer Generation Ltd
Tel: 0272 722 006
Electricity Invercargill & The Power Company:
Jason Franklin, Chief Executive, PowerNet
Tel: 0272 145 309
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