Stewart Island one step closer to cheaper power

Stewart Island looks set to turn to renewable energy sources under a multi million-dollar deal that could slash power prices and reduce carbon emissions for island residents.

Southland District Council has partnered with Meridian Energy subsidiary Right House to fund the project, which would replace the current diesel-fired generators.

Island residents currently pay 52c per unit of electricity, compared with prices on the mainland which range up to about 17c per unit.

SDC's Stewart Island Electrical Supply Authority network manager Peter Thompson said renewable energy from wind turbines, solar panels and bio-fuels was the best solution and was in keeping with the island's heritage and environment.

The project would help lower carbon emissions while providing islanders with a cheaper, sustainable replacement.

Right House chief executive Hamish Sisson said a feasibility study would be conducted early next year but until then it was not known how much the project would cost -- although Meridian spokesman Alan Seay said it was likely to run into the millions -- or what kind of savings it could produce for consumers.

Resident Philippa Fraser-Wilson said she had three island properties, with the electricity bill for her home alone averaging $300 a month.

Stewart Island Community Board member Barry Rhodes said the current system made it difficult for many, particularly the elderly who received no government subsidy.

"I think it's an exciting prospect.

It's the closest we have come to realistically being able to reduce the amount of diesel, which cheapens the power," he said.

- © Fairfax NZ News