Prevention of wind farm to cost: Contact

Preventing a massive billion-dollar wind farm in the Southland District from going ahead will eventually lead to blackouts and reliance on coal, Contact Energy says.

The state-owned generator is planning a 250MW to 350MW wind farm in Southland, which is expected to generate sufficient electricity to power 110,000 to 150,000 households.

It is going through the fast-track consenting process, but faces opposition due to its size and location, as well as its ability to efficiently generate as much electricity as they claim.

In response, Contact has delivered a 78-page submission addressing concerns, and reiterating New Zealand’s need for more wind power and renewable electricity.

"If the project does not proceed, costs to electricity consumers will likely increase by between $1.2 billion and $2.6b; and emissions will likely increase by 0.6 megatonnes to 1.5 megatonnes of carbon dioxide equivalent."

Contact Energy also warned that not bringing this project online in a timely way would result in "large power outages and rapidly increasing costs to industry and consumers".

Contact said these outages would not be tolerable and would force New Zealand to increase its reliance on imported and domestic coal and potentially liquefied natural gas, which "would have obvious consequences in terms of carbon emissions and cost".

"Having a diverse mix of electricity generation types has advantages, and New Zealand’s future demand growth will likely be met with mostly renewable electricity generation, like wind farms."

The West Catlins Preservation Society (WCPS) opposed the application, arguing the location was not correct, it was too expensive, it would harm the local ecology and it would not generate enough renewable energy to make it viable.

In response, Contact Energy said the project would eventually bring down power costs, and become a vital bulwark against the effects of climate change, while also criticising the WCPS submission for supposedly being "without any apparent expert input".

"Its effects are already manifesting around the world and will continue to worsen unless substantial steps are taken rapidly to reduce emissions.

"This point needs to be properly acknowledged, and it underscores the importance of enabling the project and the renewable electricity it will generate."

The project was expected to cost $1.1 billion, but its efficiencies were such that Contact Energy was confident it would "very quickly break even and become net positive in carbon terms, and those benefits will continue to grow significantly over the life of the project."

The Ministry for Energy estimated peak demand in Otago/Southland (excluding Tiwai Point) was expected by MBIE to rise from its present demand of 556MW to 900MW by 2038.

Contact would also undergo a survey of native insect and lizard species in the planned project area in accordance with the Department of Conservation.

Doc has asked for a 30-year concession for the project, while Contact Energy wants a 60-year concession.

The project also has support from the government, including Energy Minister Simon Watts, Infrastructure Minister Chris Bishop and Minister for the South Island James Meager. Ngāi Tahu ki Murihiku and Te Rūnanga have expressed guarded approval for the project.

matthew.littlewood@alliedmedia.co.nz