New Zealand's Hydro Energy Sector Sees an Increase in Investments by End of 2012

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Researched by Industrial Info Resources (Sugar Land, Texas)--This year, several energy generators in New Zealand have proposed $760 million worth of hydro projects. The proposed renewable energy plants will provide up to 388 megawatts (MW) of electricity in the coming years, contributing to the 2025 renewable energy target to meet 90 percent of electricity generation from renewable sources.

The projects are under various stages of the application process and are expected to come online in the next two to six years. Half of these proposed hydro plants will be built in Central Otago, which has become the hub for the largest energy generators such as Meridian Energy Limited (Wellington, New Zealand), Contact Energy (Waikato, New Zealand) and Pioneer Generation Limited (Alexandra, New Zealand).

Meridian Energy is investigating economic viability of 260-MW Waitaki River Hydro plant in Central Otago. Project construction is expected to begin in 2016, based on the final assessments and approvals.

The same company is evaluating two hydro projects in Canterbury, which will produce 53 MW of electricity. In addition to the capital investments on new projects, Meridian is spending $50 million on refurbishments of its existing units at 90 MW Waitaki Hydro Plant in Southland.

Many of the existing hydro plants in New Zealand are undergoing major refurbishments with a huge capital investments spent on upgrading and replacing the very old hydro units, which have been in operation since 1930-1950.

Contact Energy's Clutha River Hydro power station in Otago, which was proposed in early 2011, is undergoing a feasibility and preliminary design and is expected to generate 185 MW of electricity on completion, which is planned for 2018.

Hydroelectricity has been an essential source in meeting New Zealand's energy needs since the early 20th century, and 70% has been met by the renewable energy industry as a whole -including wind, solar and geothermal sources.

Recent trends for New Zealand's Electricity generations show a steady increase of hydroelectricity consumption over the past few years, with a 3.54% increase from 2010 to 2011.

Because of the new project proposals and the continuous support for renewable energy industry, there is a considerable amount of growth foreseen in New Zealand's sustainable energy market.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.