Southland Power Trust Sells SGLP Stake to Focus on Local Energy
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- The Power Company Limited divests shares in Southern Generation Limited Partnership.
- Pioneer Energy will acquire the joint venture shares from TPCL and EIL.
- Move aims to enhance local ownership and streamline energy operations.
The Southland Power Trust (SEPSCT) announced today that its subsidiary, The Power Company Limited (TPCL), is divesting its shares in the Southern Generation Limited Partnership (SGLP). This joint venture, established in 2015 with TPCL, Electricity Invercargill Limited (EIL), and Pioneer Energy Limited, has developed various renewable energy projects, including wind farms and hydro schemes across New Zealand.
SEPSCT Chair Carl Findlater stated that the sale aligns with the Trust’s strategy to focus on its core assets, ensuring Southland’s electricity network remains safe, efficient, and reliable. “The SGLP joint venture has been a successful investment but is a non-strategic asset for SEPSCT.
Exiting this interest ensures the Trust is well-positioned to support increasing demand for electrification of the Southland and Otago economies. It also enables the Trust to pursue opportunities to consolidate ownership and management of local electricity networks, ensuring ownership remains in local hands for the benefit of local consumers,” he said.
Pioneer Energy will acquire both TPCL and EIL’s shares in SGLP. This acquisition is part of Pioneer Energy’s broader strategy to consolidate its renewable generation assets. The Southern Generation portfolio includes hydro stations in the North Island, wind farms in the South Island, and a wind farm development in Southland. These assets will integrate into Pioneer Energy’s existing portfolio, which spans hydro, wind, thermal, and waste-to-energy facilities nationwide.
Fraser Jonker, CEO of Pioneer Energy, highlighted the benefits of the acquisition, stating, “Consolidating the portfolio will enable us to achieve better economies of scale, remove duplicated administration, and allow for greater synergies between assets and operations.
By acquiring the Southern generation assets we will streamline our services and allow the business to strengthen its platform for future growth.” Jonker also expressed gratitude to the partners for their shared vision of investing in renewable energy for a sustainable future over the past nine years. “We would like to thank our partners for the journey we have shared together.
Our collective vision to invest in renewable energy for a sustainable future has guided us over the past 9 years and culminated in a successful business partnership.”