Matakitaki Hydro

Network Tasman is proposing a hydro scheme on the Matakitaki River near Murchison, as well as solar generation and wind power to make the region's supply more secure and provide for growth.

The Richmond-based electricity lines provider announced the multimillion-dollar plans yesterday, estimating they could jointly power about 20,000 homes.

Network Tasman supplies electricity to about 35,000 households at present through retailers such as Contact Energy, Meridian and TrustPower.

Chief executive Wayne Mackey said the company's ability to move into power generation was prevented by legislation that Parliament was expected to change soon.

"We want to be ready to act once that happens. We intend to formalise our ideas and conduct some pre-feasibility studies to at least indicate whether the projects would be commercially and practically viable."

Network Tasman chairman Ian Kearney said between 200 and 300ha had been bought from two landowners near Murchison at "market rates" during the last few weeks so viability studies could proceed on a hydro scheme.

"You can't make decisions on viability without having the land sorted out in the first place. It's exciting as it's the first step in what we hope will be a significantly beneficial project for our region."

The hydro scheme would be the biggest of the three proposals, generating up to 30 megawatts. A further 20 megawatts would come from each of the solar and wind initiatives.

Mr Kearney said several locations on the Matakitaki River might be suitable for the hydro scheme, including the Blue Rock and Mammoth Flat areas.

A pre-feasibility study would cost between $200,000 and $300,000, while a full feasibility study would be nearly $1 million. Construction of the scheme itself could be "close to $100 million", he said.

"The company has a reasonable capacity to raise funds. At present we have no debt and we believe if it's a good, viable scheme, funding it won't be a problem. There will be a number of people happy to partner with us."

Hydro proposals in that region have met stiff opposition in recent years but Mr Kearney said the Buller River conservation order did not extend to parts of the Matakitaki. River users such as kayakers would be concerned but the company hoped to consult and work through those issues.

Network Tasman would not be undertaking the work if it wasn't fairly confident it had something that was workable, achievable and viable, Mr Kearney said.

"We're owned by local consumers. It's fair to say we believe it is the right thing for locals.

"The Government has been strongly stressing the need for renewable energy. The last winter has shown us we have a problem."

Mr Kearney said solar power was a "hot topic" at the moment, with about $2.3 billion a year being spent internationally on research. Solar generation wasn't economic yet, but it was likely to become so in the medium term, he said.

"We sort of see solar energy to be a little bit like where we saw fibre-optic cable and broadband in 1998.

"The big advantage with solar energy is you're not nearly so restricted location-wise. The main requirement is to be close to a substation or transmission lines."

Network Tasman has a site near Brightwater that it intends to use for trials and small-scale solar development.

The wind initiatives will take place outside the region, as investigations carried out by Network Tasman in the 1990s found that Nelson's average wind speed was too low for power generation to be economic.

Mr Kearney said no sites had been identified but Canterbury and the West Coast were possibilities.

The projects could all be generating power by about 2017. Construction on the hydro scheme could start within the next three to five years, Mr Kearney said.

Nelson Mail, August 16, 2008