Hydro plan leaps hurdle

State power company Meridian Energy has scaled the first big hurdle in its $900 million Waitaki hydro power proposal, gaining interim consent to take water from the Lower Waitaki River.

However, its application attracted 400 submissions of which only 27 were in support.

Called the North Bank Tunnel Concept by Meridian, this would be the first new big hydro project since the Clyde Dam.

It is a smaller and modified hydro proposal after Meridian aborted the $1.2 billion Project Aqua in March 2004 because of forecast cost blowouts and uncertainty over how much water it could take from the Waitaki River. It met fierce local opposition.

Environment Canterbury - Canterbury's regional council - made an interim decision to grant Meridian consent to take a maximum of 260 cubic metres from Lake Waitaki near the Waitaki Dam.

Meridian proposes to divert the water into a 34-kilometre tunnel down the northern side of the river.

The water would be put through a powerhouse built either in the tunnel at the top end or above ground at the bottom end. The water would be discharged into the Lower Waitaki River at Stonewall.

Meridian spokeswoman Claire Shaw said the company's initial view was that it would be able to meet the conditions of the consent.

It was an interim decision because Meridian has to prove to the commissioners it can fulfil the conditions.

Ms Shaw said Meridian would undertake engineering and other studies in preparation for applying for other consents. It does not forecast construction starting till 2012.

Meridian still has to apply for other consents including those to construct the tunnel and powerhouse, carry out land use activities in the Lower Waitaki River and consent to build the discharge structure, the interim decision said. Meridian is still at stage one of a two-stage consent process.

Chief executive Tim Lusk said he was pleased to finally have a decision.

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