Slow Electricity Demand Delays Windfarm Plans in New Zealand

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Researched by Industrial Info Resources Australia (Perth, Australia)--TrustPower Limited's (Waiuku, New Zealand) 100-megawatt (MW) Mahinerangi Windfarm expansion will be delayed due to the stagnant electricity market in New Zealand. It will be yet another minor project held up in the permitting process.

TrustPower proposed building the Mahinerangi Windfarm in Dunedin, Otago, in New Zealand. The project is an expansion of the existing 36-MW Mahinerangi Windfarm, which was built by the company in 2010-11. The Stage II expansion is still in the early scoping and feasibility phase. TrustPower said that it wanted to better understand the market conditions for electricity demand in the region before continuing with the project. If built, the windfarm would feature 30 to 35 wind turbines of 3 MW each, which will generate approximately 100 MW of electricity. TrustPower would probably engage Vestas New Zealand Wind Technology Limited (North Island, New Zealand) to build the windfarm. Vestas is also a potential supplier of the wind turbines.

Another windfarm project delayed by TrustPower is the 15-MW Awhitu Windfarm, which is to be built in Waiuku, New Zealand. This project was proposed in 2004 by Genesis Energy Limited (Wellington, New Zealand), with plans for up to 18 wind turbines and a capacity of up to 25 MW. In 2004, Genesis received carbon credits from the New Zealand government. Genesis received resource consents in 2005. However, due to economic factors, Genesis didn't continue with the project.

Genesis Energy later sold the windfarm development rights to TrustPower Limited. TrustPower didn't begin development until 2012 due to economic benefits associated with the windfarm. Trust Power had selected Gamesa Australia Pty Limited to supply turbines to build the windfarm in 2012. Recently, the company decided to put the project on the backburner again due to the economic slowdown and electricity requirements.

On the same note, electricity giant Mighty River Power Limited (Wellington, New Zealand) also confirmed its intentions to delay two major windfarm developments in New Zealand for economic reasons.

For more information, see June 17, 2013, article - Softer Demand for Electricity Delays 490 Megawatts of Wind Projects in New Zealand.

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