South Island's largest wind farm opens in New Zealand
Built WorldMercury's Kaiwera Downs project is one of three renewable developments totaling $1 billion in investment
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Overview
Updated 1 hour agoMercury opened the Kaiwera Downs Wind Farm near Gore on Wednesday, the South Island's largest. The $600 million project's 46 turbines generate 675 gigawatt-hours a year, enough to power 96,000 homes.
The opening is part of a larger buildout. Mercury has three renewable projects totaling about $1 billion in investment and 1.1 terawatt-hours of annual generation, enough for 160,000 homes. Two more large wind farms are in the pipeline for the South Island.
Why it matters
New Zealand is adding renewable generation at scale to replace fossil fuels and power new data centres, with the South Island at the center of the buildout.
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People Involved
Organizations Involved
New Zealand power generator and retailer with hydro, geothermal, and wind assets.
New Zealand power company developing a 55-turbine wind farm in eastern Southland.
Operator of the Tiwai Point aluminium smelter, which uses about 13% of New Zealand's electricity.
Developing what is expected to be New Zealand's most advanced large-scale data centre in Southland.
Timeline
2024 September 2026
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Kaiwera Downs Wind Farm officially opens
Today MilestoneMercury opened the South Island's largest wind farm near Gore, completing a $600 million two-stage project.
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Mercury approves $506M Puke Kapo Hau investment
InvestmentMercury's board approved the 192-megawatt Puke Kapo Hau wind farm, construction expected before end of 2026.
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Puke Kapo Hau receives fast-track consent
RegulatoryMercury's 40-turbine Puke Kapo Hau wind farm west of Dunedin received fast-track approval.
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Southland Wind Farm gets fast-track approval
RegulatoryContact Energy's Southland Wind Farm received fast-track consent for a 380-megawatt project.
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Mercury signs power deal with Datagrid
AgreementMercury signed a 140-megawatt power purchase option with Datagrid for its Southland data centre.
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Contact Energy lodges Southland Wind Farm application
RegulatoryContact Energy filed its application for a 55-turbine wind farm in eastern Southland.
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Mercury signs Tiwai smelter support agreement
AgreementMercury signed a Tiwai smelter support agreement, enabling Kaiwera Downs stage two.
Historical Context
2 moments from history that rhyme with this story — and how they unfolded.
Tiwai Point Aluminium Smelter (1971-present)
The Tiwai Point smelter near Bluff opened in 1971, built to use power from the Manapouri hydro scheme. It consumes about 13% of New Zealand's electricity and has repeatedly threatened closure over power price negotiations, most recently in the 2020s.
In 2024, Mercury signed an agreement to support the smelter, providing near-term certainty and enabling the Kaiwera Downs stage two expansion.
The smelter's future remains uncertain. If it closes, Southland would have a large electricity surplus, potentially affecting the economics of new wind farms in the region.
The smelter's power demand is a key reason new wind generation is being built in Southland. Its potential closure is a major variable in the region's energy planning.
Mt Cass Wind Farm (2006-2026)
First proposed in 2006 by North Canterbury lines company MainPower, the Mt Cass Wind Farm faced repeated setbacks over two decades. In 2026, Malaysia-based Yinson Renewables bought the project and Genesis Energy agreed to buy 70% of its output, clearing the way for construction of 22 turbines generating close to 100 megawatts.
Construction is expected to start in early 2026 with completion in 2028.
The project shows how long wind farms can take in New Zealand without fast-track approvals, and how new ownership and power purchase agreements can revive stalled projects.
Mt Cass took 20 years from first proposal to construction. The fast-track approvals granted to Kaiwera Downs, Puke Kapo Hau, and Contact Energy's Southland Wind Farm are designed to compress that timeline dramatically.
