Awhitu wind farm cut as turbine costs soar

State power company Genesis has decided against developing a small wind farm in South Auckland because of soaring wind turbine costs, it was reported today.

Developers of wind farms are reviewing the costs of projects amid hot international demand for turbines, which is driving up the costs of the machinery, The Dominion Post said.

Genesis public affairs spokesman Richard Gordon said the cost of wind turbines had risen 30 per cent since Genesis started examining the Awhitu wind farm project 18 months ago.

It was thought Awhitu would be uneconomic for 20 years, but Genesis, which had to start building the wind farm within five years under its resource consent, would keep reviewing the economics.

The Genesis wind farm of less than 20 megawatts is small compared with Meridian's proposed 70-turbine, 210MW wind farm at Makara, 20km out of Wellington on the southwest coast.

Meridian's external relations adviser, Alan Seay, said it was unlikely to axe the West Wind project, in Makara.

It was expecting a decision from the Environment Court soon on an appeal against the project.

Hawke's Bay electricity network company Unison, which is planning a big wind farm near Napier, said it was undertaking an assessment and would make a decision in about six weeks on whether to proceed.

- NZPA