A Central Otago company will be given permission by the Department of Conservation to study streams on Stewart Island for a potential hydroelectric project.
Acting Southland conservator Andy Roberts told the Southland Conservation Board this month DOC had no objections to the work.
J G Wilson, of Roxburgh, is one of the companies hoping to solve Stewart Island's electricity supply shortage, Mr Roberts said.
It had previously been involved in small-scale hydro projects in Central Otago.
"They have got an application to do water readings, tests, collecting data. We are quite happy with them doing that.''
DOC felt the island needed to have data about whether hydro schemes and other types of electricity generation were feasible.
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