Simpson Grierson has advised Centralines Limited on the financial close of its joint venture with Lodestone Energy to develop and operate their Central Hawke’s Bay Solar Farm, marking the first time Lodestone Energy has partnered with an electricity distribution business to deliver a utility-scale generation project.

The transaction establishes a 50:50 limited partnership to finance, develop and operate the $50 million project on the Ruataniwha Plains in Central Hawke’s Bay. Once operational in late summer 2027, the 31.5 MWdc farm will generate around 50 GWh of renewable electricity annually, enough to power approximately 7,000 homes.

A new model for the energy transition

The structure is significant beyond this project. Centralines, as a consumer-owned electricity lines business, brings network infrastructure, local knowledge and community accountability. Lodestone, New Zealand’s leading utility-scale solar developer, brings construction expertise and development capability, with an established track record across five solar farms to date.

Simpson Grierson Partner Simon Vannini says the model points to a broader shift in how New Zealand’s energy transition will be financed and delivered.

“This is the first time Lodestone has partnered with a lines company in this way, and we think it’s a model others will follow. The combination of a distributor’s network knowledge with a developer’s solar expertise is a powerful one. 

“Regulatory settings are also moving in a direction that will make this model easier and more attractive, and we’re proud to have helped Centralines get there first.”

Stuart Smith, Business Development Manager at Centralines, says the transaction was complex and Simpson Grierson’s cross-practice capability was central to reaching financial close.

“Simpson Grierson brought specialists from across the firm to this project, covering corporate, construction, financing, property and beyond. This was a genuinely complex transaction, and the depth of expertise, combined with their level of engagement and speed of delivery, has been key in enabling this project to reach financial close within the expected timeframes,” says Stuart. 

Transaction detail

Simpson Grierson advised Centralines across all stages and project streams, including:

• Partner selection: Advising on the RFP process and selection of Lodestone Energy as joint venture partner.
• Joint venture structuring: Establishing the limited partnership SPV and negotiating governance, commercial and risk-sharing arrangements between the two partners.
• Project documents: EPC and O&M agreements, early works procurement, network connectivity arrangements, power purchase agreements, and land subdivision and leasing.
• Project financing: Advising Centralines on the non-recourse financing structure and its interaction with the JV arrangements.

A key focus was ensuring the structure aligned with Centralines’ obligations as a regulated distribution business, allowing it to participate in generation without compromising its network operations. The firm continues to advise both parties as the project progresses toward construction and delivery.

Simpson Grierson team

Lead Project/Corporate Partners: Simon Vannini, Edward Norman

Team: Shanti Frater (Construction Partner), Chris Browne (Special Counsel), Nicola Peak (Senior Associate), Isabel Van Tuinen (Senior Solicitor)