A new hydro-electric scheme on the upper Fraser River, near Alexandra, would bring significant benefits to the district, the Central Otago District Council has decided.
The council's hearings panel has approved resource consents for Pioneer Generation's proposed $15 million to $20 million scheme and said the benefits would outweigh the adverse landscape and visual effects.
It has granted consent, subject to 33 conditions.
Pioneer, a community-owned company which owns and operates 13 hydro-electricity generation stations and two wind farms in Otago and Southland, still has to gain the appropriate resource consents from the Otago Regional Council for the upper Fraser scheme.
Approached for comment on the district council's decision yesterday, Pioneer chief executive Fraser Jonker said the company was pleased to gain the first round of consents needed.
''Of course, we have other hurdles to get over yet, so it is way too soon to talk about when construction might start if all goes well, as we still have some consents to get,'' he said.
The run-of-the-river scheme would generate enough electricity annually (30GWh) to power 3500 homes.
Pioneer civil engineer Tony Jack, who would be the project manager, gave evidence at the hearing a fortnight ago.
He said the power generated at the upper Fraser would be about 12% of Pioneer's current generation capacity.
Pioneer was owned by the Central Lakes Trust and any profits were returned to the community through grants.
The benefit to the local community during construction was estimated to be about $5 million to $10 million through construction contracts, supply of materials, accommodation and employment.
The site is about 13km west of Alexandra and the scheme would be located mostly on Earnscleugh Station Holdings Ltd land, with some components within the river bed and marginal strip of the Fraser River.
Four submissions were received on the application - one in support, one opposed and two neutral.
Hawksburn Station shared a boundary with Earnscleugh Station and Hawksburn director Philip McElroy told the hearing his merino sheep would be upset by construction activity during lambing time.
Some consent conditions on Pioneer revolved around mitigating adverse effects on farming operations at Hawksburn.
Goldminer Phillip Joostens, of Gore, was the only opponent to the hydro proposal.
