Wind farm ruling may set trend: mayor

The Environment Court's decision to decline Meridian Energy's controversial Project Hayes wind farm on the Lammermoor Range could spell the end of large-scale electricity generation development in Central Otago, Mayor Malcolm Macpherson said yesterday.

While he had not seen the 350 page decision, he assumed the main reason for declining consent was the special landscapes.

• Family moving on despite good result [1]

• Communities divided by plan [2]

"And if that's the case, it might set one of the most important precedents for Central Otago, Otago, and New Zealand. I wonder whether this is the end of big renewables of any sort, in this part of the country, at least."

Project Hayes, a $2 billion, 176-turbine wind farm, would have been the largest of its kind in the southern hemisphere, encompassing 92sq km of Central Otago high country.

Dr Macpherson said the "devil is in the detail", and the importance of the 350-page document would depend on what grounds Environment Court judge Jon Jackson and the three commissioners declined consent.

"The real significance will be in the rationale behind the decision. Without seeing it I can only guess that the fact it is 350 pages means it was not a simple `no', and there's been a great deal of thought put into it," he said.

People throughout Otago would have mixed feelings about the project being declined, particularly due to the recession.

"There would have been a prolonged period of construction-related activity that would have been really beneficial across all of Otago, and unless there's another application from Meridian, then that opportunity has been lost.

"There would have been a number of people anticipating for some time the pick-up in work from the project and now their hopes are gone. Having said that, there will also be a large number of people who will think it's a very good outcome and will be looking carefully at what it means for other projects," he said.

Dr Macpherson said the Central Otago District Council would have to "tally up" what it cost to be a party in the Environment Court appeal hearing.

The council, along with the Otago Regional Council, initially consented Meridian's application for the project in 2007.

Dr Macpherson said Meridian covered all costs of the initial hearing, but not the appeal.

He wondered whether Meridian would have "deep enough pockets" or the will to make an amended application.

"Maybe a modified application with different parameters would have been successful."

• A win and loss: that was how Otago Regional Council chairman Stephen Cairns summed up the Project Hayes decision.

"You could knock me down with a feather. I am surprised to hear the project's not going ahead," he said.

"Speaking without having viewed that decision, I'd have to say my initial response is that it's a win for those who want to protect the landscape but a loss to the nation of a renewable energy resource."

Mr Cairns said he "wouldn't have been disappointed" if the wind farm application had succeeded, and canning the project would be a loss to the country.

"It was a renewable energy resource which had a synergy which made it more than just a straightforward wind farm application."

The issue had certainly divided the region, he said.

"It's been a contentious issue, with people strongly in support of the project, and strong opposition. The only other issue I can think of that has generated such a response in this region in recent times is the [Forsyth Barr] stadium debate."