Developer Mercury has reached a final investment decision on the 192 MW Puke Kapo Hau wind farm in New Zealand's South Island, committing USD 297.5 million to a project that will hand German turbine manufacturer Nordex its first-ever order in the country.

Project Overview and Scale

The 40-turbine wind farm is located west of Dunedin and represents the Stage 2 expansion of the existing Mahinerangi Stage 1 site. Mercury's board approved the project in August 2026, with construction expected to begin before the end of the year.

The first generation from Puke Kapo Hau is expected by the fourth quarter of fiscal year 2028, with full generation anticipated by the second quarter of fiscal year 2029.

The site is projected to generate approximately 533 GWh of electricity annually. When combined with the Mahinerangi Stage 1 facility, the two sites are expected to form New Zealand's largest wind farm, with a combined capacity of 228 MW and annual generation of 646 GWh.

Final grid connection studies are currently being completed with transmission operator Transpower.

Nordex Secures Historic Contract

Nordex Group has been selected as the turbine supplier for the project, which the New Zealand Wind Energy Association has confirmed is the company's first turbine order in New Zealand.

The German manufacturer will supply 40 N133 4.8MW units, each with a tip height of 156 metres and a hub height of 90 metres. The agreement is structured as a 30-year supply and support arrangement.

The contract was confirmed by the New Zealand Wind Energy Association, which noted that key balance of plant contracting arrangements have also been secured with Higgins and ElectroNet Group.

Competitive Project Costs and Fast-Track Consent

The New Zealand Wind Energy Association described the project's cost of USD 1.53 million per megawatt as very competitive compared with other projects recently being advanced in the country.

Puke Kapo Hau also carries a regulatory milestone, having received fast-track consent approval in July 2026. Mercury described this as its first project to receive approval through New Zealand's fast-track consenting process.

Datagrid Connection and Demand Outlook

The association said the Puke Kapo Hau project is positioned to support South Island electricity demand, including from Datagrid, which is developing what is expected to be New Zealand's most advanced large-scale data centre project.

Mercury announced in March 2026 that it had signed a 140MW power purchase option agreement with Datagrid. Mercury subsequently invested USD 31.17 million for a 12.7% minority stake in Datagrid NZ.

Industry Reaction

Kevin Hart, chief executive of the New Zealand Wind Energy Association, said the investment decision carried broader significance for the sector. "The decision is yet another strong signal that wind energy is bankable and is actively supporting Aotearoa NZ's energy security and future demand growth," Hart said.

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