Meridian Energy's Hydro Project Falls Victim to New Zealand's Energy Market Conditions

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Researched by Industrial Info Resources India (Perth, Australia)--Meridian Energy Limited (Wellington, New Zealand) pulled out from the development of the 38-megawatt (MW) Amuri Hydro Power Project (HPP) in New Zealand due to low electricity demand and poor market conditions. The project was a joint venture with Ngai Tahu Property (Christchurch, New Zealand) and was to be located on the Waiau River, in New Zealand's Hurunui district. The hydro plant would have produced enough power for 19,000 local homes annually.

The hydro project, which was proposed in 2011, experienced several delays. In October 2011, the project partners submitted the consent applications for the project, which was put on hold by the environmental commission. Meridian and Ngai Tahu resumed the project activities in 2013 and have applied for resource consents. However, considering the existing market conditions and scope for new investment opportunities, Meridian and Ngai Tahu recently decided to withdraw the project application.

Meridian Energy and Ngai Tahu decided to halt development of the 35-MW Lake Pukaki hydro power project for the same reason. The hydro station was to be located close to Lake Pukaki in New Zealand's Mackenzie Basin. The proposal was to construct a run-of-the-river hydro project, with one or two turbines to produce enough electricity to supply to 10,000 average homes in the Mackenzie district.

The project gained resource consents in 2011, and both companies had been working on gaining the necessary approvals to build the hydro plant. However, project developers recently decided to put a hold on the project, as they don't see enough prospects to continue with the development in the current market conditions. Though the exact timing is not yet determined, Ngai Tahu and Meridian will continue to assess the electricity demand and resume project activities to match the electricity requirements in the next four to five years' time.

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