NMC battery storage project financing options in New Zealand 2026

Which large-scale battery energy storage systems are coming to New Zealand?

As a result, worldwide as well as in New Zealand, more and more large-scale Battery Energy Storage Systems (BESS) are announcing their arrivals. Let’s take a look at a few examples: 1. WEL Networks + Infratec: 35 MW BESS

What is the NZ battery project?

The NZ Battery Project also seeks to ensure energy using businesses can continue to rely on the electricity system to support continued business and industrial operations. Failure to solve the dry year problem in a 100% renewable electricity system will result in shortages and price volatility with economic costs for electricity-using businesses.

Is the NZ battery project a dry year solution?

This Indicative Business Case is supported by a significant body of technical evidence – but uncertainties exist across all options. The NZ Battery Project was set up with a predominant focus on the option of a pumped hydro scheme at Lake Onslow in Central Otago. This option has been raised as a potential dry year solution since as early as 2005.

What is New Zealand's First Utility-scale battery energy storage system?

New Zealand welcomed its first utility-scale battery energy storage system earlier this year. The 35 MW/35 MWh Rotohiko battery facility commenced operation with electricity distribution company WEL Networks in April, after compleating testing and commissioning.

Could NZ battery project increase existing hydro storage?

The NZ Battery Project identified several potential options for increasing existing hydro storage, including through discussions with generators. Lake Pukaki in the South Island (pictured right) was identified as the only potentially suitable location for extension that could meet the required scale.

What if the funding requirements for the NZ battery investment are too high?

If the funding requirements for the NZ Battery investment are much greater than anticipated, there may be increased cost burdens for the Crown or electricity consumers. The Indicative Business Case is informed by the current best available cost information, but this will continue to be updated as improved design information becomes available.