A Bay of Plenty project is one of three solar projects in regional New Zealand which will receive loans of up to $28.1 million combined from the Regional Infrastructure Fund to ensure security of local energy supply and community resilience, Regional Development Minister Shane Jones and Energy Minister Simon Watts said.

In Te Kaha, Bay of Plenty, a loan of up to $4.75m will be made to Te Huata Charitable Trust to build an 804kW-peak solar farm to ensure reliable electricity supply to about 320 homes and businesses.

The Te Kaha project will provide more reliable, competitively priced power for a Māori community that regularly suffers electricity outages. The solar farm battery will have storage capacity for up to 72 hours which will protect the community from power outages.

Reliable power will also help the Ōpōtiki region with its bid to be an aquaculture centre of national significance. During construction, up to 12 people will be employed.

A second project in Rakiura/Stewart Island is a suspensory loan of up to $15.35m to Southland District Council to build the first stage of a solar farm, and network upgrades, replacing high-cost, diesel-generated electricity for the island’s 494 permanent electricity connections.

The Rakiura/Stewart Island project is expected to reduce diesel consumption by 200,000 litres within two years of beginning. During construction, about 40 high-skilled workers will be required.

When complete, more competitive energy costs will help business growth on the island including in aquaculture, tourism and hospitality.

In Ongaonga, Hawke’s Bay, a loan of up to $8m will be made to local lines company Centralines Ltd to build a 35ha solar farm to generate 52GW annually and provide about 9000 electricity connections in Central Hawke’s Bay with a local source of generation.

The Ongaonga solar farm will improve electricity network resilience and support more competitive pricing for residents and commercial customers. Power could also be supplied to the national grid at peak generation. About 80-100 roles are expected to be needed during construction.

“The loans for these projects in Bay of Plenty, Hawke’s Bay and Rakiura/Stewart Island will allow them to get under way this year, helping them to improve economic prosperity and resilience. They will also create up to 150 jobs during construction,” Jones said.

“These projects support the Coalition Government’s objective of doubling renewable energy generation by 2050 and enabling a more reliable and affordable electricity supply for regional New Zealand,” Watts said.

Watts said solar power is playing an increasingly important role in increasing electricity generation in New Zealand.

"It will help us reach our renewable energy targets and bolster the security and affordability of our energy supply," Watts said.

“The Government has been making great progress on a series of exciting new solar and battery initiatives recently. I look forward to seeing these three projects make a real difference for these communities."

Associate Regional Development Minister Mark Patterson travelled to Rakiura for the announcement on Monday. He said the project should lead to considerable savings for residents.

“The Regional infrastructure Fund is contributing to energy security where communities cannot gain investment from other sources, and there are wider benefits for the communities,” Patterson said.

The Regional Infrastructure Fund is a capital fund with the primary purpose of accelerating infrastructure projects, particularly with a focus on water storage, energy, and resilience, which will make a difference in the regions.

Funding is approved in principle and announced, after which contracts are negotiated. Some funding may depend on completion of business cases. Payments are made once agreed milestones are met. These are set as part of contract negotiations and differ from project to project.