A new Southland wind farm is set to start generating electricity by this time next year, according to generator Mercury NZ Ltd.

The Kaiwera Downs project had its symbolic sod turning yesterday with Gore District mayor-elect Ben Bell and Mercury general manager Phil Gibson.

“The renewable energy that will be generated here will reduce New Zealand’s carbon emissions and provide more renewable electricity to other sectors like transport and process heat,” Gibson said.

Mercury said Stage 1 of the Kaiwera Downs project would see $115m committed and up to 43MW produced.

According to a recent independent report by Boston Consulting Group, in order for the country to reach over 98% renewable generation, around 4.8GW new renewable generation would be needed to be built by 2030, Mercury said.