Meridian back with plan B for Project Aqua

Meridian is taking a cautious approach as it seeks approval for a new power station on the Waitaki River. Picture / Otago Daily Times

Two years after dumping its controversial $1.2 billion Project Aqua project, Meridian Energy is reviving the plan for a smaller power scheme on the lower Waitaki River.

The state-owned energy generator was forced to abandon the original plan on the Otago river because of overwhelming public opposition, uncertainties regarding water allocation as well as increasing costs related to geotechnical issues.

The new $900 million scheme, signalled last year, is a 34km tunnel with one power station between the Waitaki dam and the Stone Wall on the north bank of the river.

Using lessons it learned from the opposition to Project Aqua, Meridian has involved the community in early consultations.

"Most" of the 13 affected lower Waitaki River landowners were in favour of the concept, their spokesman said yesterday.

In another departure from Project Aqua, which became mired in a complex consents process, Meridian is taking a two-stage approach and will first apply later this year to Environment Canterbury for "water-only" resource consents for the scheme.

Construction of the scheme would require further land use consents from the Waimate District Council.

Meridian first outlined the tunnel scheme when asking for water for it during hearings by the Waitaki Catchment Water Allocation Board last year.

The plan, which is under appeal to the High Court by Meridian and the Mackenzie Irrigation Co, allowed for a minimum flow of 150 cumecs between the Waitaki dam and Stone Wall.

However, Meridian plans to apply for a minimum flow lower than that provided in the plan. It wants to vary it between a minimum of 110 cumecs and 150 cumecs, based on environmental and recreational values, including fishing.

Preliminary estimates have put the cost of the scheme at between $700 million and $900 million, compared with $1.2 billion estimated for the Project Aqua power scheme with six power stations on the south side of the lower Waitaki Valley.

Meridian cancelled the 530MW Project Aqua in March 2004.

The north bank scheme would generate a maximum 200 to 285MW in electricity with an annual average output of 1100 to 1400GWh - equivalent to the electricity needs for all houses in Christchurch.

Project manager Tony McCormick said the two-stage consents process was unique in terms of a major hydro scheme.

It would ensure Meridian, which had the guarantee of the fuel - water - for the hydro scheme before proceeding to the next step.

It would also enable Meridian to carry out extensive consultation during the water rights process, along with detailed investigations and design of the scheme.

"Meridian is committed to consulting with the community now and throughout this water-only resource consent process," McCormick said.

With Project Aqua, Meridian presented a detailed scheme to the community then applied for water rights and land use consents at the same time.

Meridian also came under criticism from communities and individuals during Project Aqua for not carrying out a social impact assessment of the effects of the scheme early enough.

This time, it has appointed an independent consultant, Nick Taylor, of Taylor Baines of Rangiora, to prepare an assessment for the water-only consents.

Meridian is also carrying out technical assessments on the river environment. McCormick said it was expected these reports would be available in May.

At this stage, Meridian is looking at apply for the water-only consents in the third quarter of this year. 

- OTAGO DAILY TIMES