Unpredictable economic times could delay the building of two major wind farms in the South, even if both projects receive resource consent.
TrustPower community relations manager Graeme Purches yesterday said the falling New Zealand dollar and continued strong demand for wind turbines globally could potentially add tens of millions of dollars to the bill for its proposed wind farms at Mahinerangi, near Dunedin, and Kaiwera Downs, near Gore.
This could force power companies to delay projects because turbine orders abroad needed to be placed at least a year, sometimes two years, in advance - and a poor-performing kiwi dollar meant they received less value for each turbine.
Timing was crucial to saving millions, Mr Purches said. Power companies were waiting for the exchange rate, among other factors, to improve.
TrustPower usually buys turbines in Euros or American dollars but with the kiwi valued so low against those currencies, it did not make economic sense to "just go out and order some".
Apart from exchange rates, the other major factor was the demand for wind turbines.
Globally, turbines are in hot demand and this has seen their price soar.
Mr Purches cited the example of its Tararua wind farm development in the North Island.
Each of its turbines for that project cost about $1.8 million, but the cost today would be closer to $2.5 million.
It was also hard to finalise costs until resource consent had been secured, he said.
In the case of both Mahinerangi and Kaiwera Downs, there was still the prospect of a rehearing, which would take time and further delay the projects.
Mr Purches said final plans and other costings were then finalised and presented to its board, which ultimately decided if the investment was warranted.
