Low Electricity Demand Holds Up Two of Meridian's Renewable Projects in New Zealand

Researched by Industrial Info Resources Australia (Perth, Australia)--The 15-megawatt (MW) Balmoral Hydro Project (BHP) development on the Hurunui River in North Canterbury, New Zealand, remains on hold after Meridian Energy Limited (Wellington, New Zealand) said it wanted to know more about the market conditions for renewable energy in the region before continuing with the project.

The Balmoral site was chosen because of its proximity to the local transmission grid, which could eventually avoid transmission losses and also reduce electricity prices in upper South Island region; however, Meridian decided to pause project development due to the current soft demand for electricity in New Zealand.

The project originally was proposed by Ngai Tahu Property Limited (NTPL) (Christchurch, New Zealand), which owns 8,596 hectares of land adjoining and adjacent to the Hurunui River, of which 8,037 hectares is in Balmoral Forest on the north bank. NTPL investigated the options to build the Balmoral hydro-generation scheme and conducted prefeasibility studies in 2005. In 2008, Meridian Energy entered into a joint venture with NTPL and conducted technical feasibility studies.

The project would operate largely as a run-of-river scheme and generate approximately 15 MW of electricity. Ngai Tahu Property and Meridian applied for resource consents in December 2012, and the project was put on hold due to regional planning issues.

The resource consent application process will be performed during or after 2016, while the construction timeline depends on market demand. According to a project spokesperson at Meridian, the company has delayed development of several windfarms in New Zealand, including the 75-MW Hurunui windfarm in the same region. The Hurunui windfarm is still in the early scoping phase, and construction is not expected to begin at least for another four to five years.

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