Smart decisions will power our future

DEBATE: Wind farm developments in Manawatu have attracted huge public attention.

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OPINION: Meridian's KEN SMALES provides context for, and comment on, the proposed Project Hurunui wind farm in North Canterbury.

As a nation we are fortunate that 70 per cent of our electricity comes from renewable resources. Not only is it better for the environment, it minimises our present and future exposure to the cost and dependency risk of importing costly fuels.

Over the coming years, New Zealand's energy consumption is expected to continue to increase, which means that without new generation, demand will outstrip supply. We can all do our bit by reducing our electricity consumption where we can, but the reality is that additional generation will be needed and it has to come from somewhere.

Coal and gas are today part of the energy mix in New Zealand, but are not viable options for new generation in an increasingly carbon- constrained world. In terms of renewable energy, viable options include geothermal, wind and hydro generation. Of these, apart from a relatively small tranche of geothermal opportunities, wind generation is currently the least-cost renewable- energy option for New Zealand. Solar or tidal power are at a much earlier stage in the technology life- cycle and, as such, are expensive and would add unacceptably to consumers' power bills.

Meridian has been one of the pioneers in developing wind generation as a clean energy source in New Zealand, and it is an ideal match for our South Island-based hydro generation that provides the bulk of our all-renewable portfolio. We have three wind farms in operation around the country: West Wind in Wellington, Te Apiti in the Manawatu, and White Hill in Southland. Together they produce 291 MW of electricity, enough to power 145,000 homes. Project Hurunui north of Christchurch could potentially be another, and would add a further 76 MW, enough to power the annual energy requirements for 31,000 homes.

The macro benefits of this are obvious. But Meridian recognises that wind farms affect the community in the immediate vicinity and that a proposal to develop a wind farm can create uncertainty and fear of the unknown. It is for that very reason that we engage closely with a local community months before we lodge a resource consent application. We want the community to be fully informed in order to make a rational assessment of the benefits and possible impacts of a wind farm in their area.

In this context, we began consulting with the community affected by Project Hurunui more than four months ago. We held well- attended open days in May where people could find out in detail about the project. We've contacted and spoken to residents individually - and continue to do so. Brochures, information sheets and landscape simulations have been provided, and the project is outlined on the Meridian website.

No matter where Meridian or indeed other developers might want to build renewable energy facilities that New Zealanders say they want to power their future, there will always be somebody who has a reason why it should not be built there. We understand the depth of feeling of those individuals, and we have a genuine respect for the views and concerns of communities.

But this needs to be balanced against the big-picture supply/ demand situation. In the upper part of the South Island, peak demand at 1000 MW far exceeds existing installed generation capacity north of the Waitaki (137 MW). If more generation is not built north of the Waitaki, then significant grid enhancement will be required to meet the ever-increasing requirements of the area.

Our experience is that communities benefit from wind farm developments. About $59 million will be spent on building the infrastructure that is required to support a project of the scale of Hurunui Wind. This includes the civil works, the construction of the maintenance and operations building, along with the switch yard and transmission line. The introduction of the wind farm roading network will require significant changes to the existing fences and stock-control systems. Meridian has a policy of sourcing this work from within the region and, to date, this has been the case with our other projects. There are also the other services that will be required during and after construction, such as road maintenance, courier and transport requirements, ongoing maintenance and servicing requirements. These activities all benefit the local economy.

The commissioning of White Hill as an operational wind farm has created three permanent jobs, all of which are filled by locals. In addition, owners of the land on which turbines are to be sited can legitimately earn valuable extra and steady income, which provides them with opportunities for reinvestment in and growth of their businesses, which has further downstream benefits for the wider community.

Those wider benefits to the many are important to weigh up against the objections of a few, and the framework for this balancing act is the Resource Management Act and the consenting process. Meridian is committed to lodging a resource consent application for Project Hurunui, respectfully taking into account the feedback we have received from our extensive engagement with the local community to date.

We're committed to doing the very best we can to work with communities and councils to deliver clean emission-free electricity to power our future, being mindful of the balance we have to strike between the benefits and possible effects each development presents.

Sooner or later, New Zealanders are going to have to make some choices about what new energy projects we can all live with. If, as polls consistently indicate, the favoured option is wind, then some landscapes will have to have wind farms built on them.

* Ken Smales is the general manager of renewable development at Meridian Energy.

- © Fairfax NZ News

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