Pukaki hydro plans

Meridian Energy is developing a hydro project on Lake Pukaki which should help offset the Government's decision to split its assets, the Timaru Herald has learnt.

The state-owned enterprise has been in talks with stakeholders in the Lake Pukaki area. The discussions were understood to be at a sensitive stage and the project has been kept under wraps.

The Herald understands that it could be looking at old plans surrounding Pukaki Gate 18, first drawn up in the late 1970s, which would entail extra generation from the control gate itself.

The Mackenzie District Council inadvertently let slip details about the project when it mentioned in an agenda that the region's mayor, John O'Neill, had been meeting with Meridian staff. "That wasn't meant to be there," he said.

Meridian spokeswoman Claire Shaw said she could not comment in detail because the project was still in the early stages and the company had to consult with stakeholders first.

"We are working through the feasibility with the relevant stakeholders. This project is about getting the best out of our assets, especially in the current environment."

Ms Shaw said a similar project was proposed back in the 1970s by the then Ministry of Works.

Lake Pukaki is one of Meridian's key storage lakes which help feed six dams on the Waitaki power system. A dam was first built on the lake in the 1940s. It was replaced in the 1970s with a high dam that allowed for raised storage in the lake.

Meridian has been looking for ways to maximise its remaining assets after the Government decided last year it would split its system.

The Government wants Meridian to hand over its Tekapo A and Tekapo B dams to rival Genesis Energy to help even out competition in the energy market. In return, Meridian, which has its main assets tied up in hydro generation in the South Island, would get access to some of Genesis' thermal assets.

The plan would effectively mean that Meridian would lose control of Lake Tekapo, leaving Lake Pukaki as its key storage lake.

Twizel resident Rick Ramsay said the proposal was raised when he was project information officer for the Ministry of Works from 1977 to 1984.

"Back in the 1970s, the costs didn't stack up, but with the rise in power prices and the drive for more renewable generation, the project would be much more viable now," he said.

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