Dunedin could be using Mahinerangi wind power before the end of the year.
At its meeting next month, the board of Tauranga-based TrustPower will consider whether to erect between 10 and 18 wind turbines on its site inland from Dunedin.
Community relations manager Graeme Purches told the Otago Daily Times that if the board decides to go ahead then it would simply be a matter of how long delivery of the turbines took and how quickly contractors could get them in place.
"I'd certainly like to think that by the end of the calendar year we would at least have some turbines firing power out."
Mr Purches said TrustPower had sought proposals and prices from turbine manufacturers.
"What we got back is pretty encouraging.
So we're preparing board papers and proposals for April."
Most turbine manufacturers are in northern Europe and TrustPower has previously said one of the factors in deciding when to proceed would be the value of the New Zealand dollar against the euro.
A year ago, the exchange rate was 1 to $NZ2.46.
Now the rate is 1 to $NZ1.94.
Mr Purches said the market for turbines had become more competitive.
"There certainly appears to be some enthusiasm on the part of the turbine manufacturers to do deals and supply, so it's looking pretty encouraging."
TrustPower wants to generate up to 40MW from the first stage and could opt for either 2MW or 3MW turbines.
Mr Purches suspected the board would be "more likely to opt for the big boys".
"For twice the size turbine you actually get five times the output.
And, of course, having the bigger turbines means there are less holes dug in the ground, you've got less cabling, there's less roading network . . . so you don't have to carve up the countryside as much."
TrustPower has consent for up to 100 turbines at the Mahinerangi site producing 200MW.
By erecting just a small number to begin with, TrustPower would be able to feed the electricity into the local circuit from its Waipori hydro-electricity power station to Dunedin.
That would avoid the company having to connect to the national grid and paying a charge for the operation of the Cook Strait cable and the proposed $670 million upgrade.
Mr Purches said wind and hydro projects in the South Island were being held back because the cost of the cable falls only on South Island generators.
"It should be part of the national grid and everybody should be paying for it."
Electricity commission chairman David Caygill last Wednesday said he would release a set of options for new pricing structures within three months, but he considered the most logical time for change would be after the cable was upgraded in 2012.
