A $13 million hydro-electric scheme is under construction in Hawke's Bay that will harness power from two tributaries of the Esk River.
The 3.8 MW scheme, to be known as Esk Hydro, is being built by Tauranga-based Trustpower and will provide enough electricity to power about 1800 homes.
The Toronui and Rimu tributaries will be harnessed and the electricity fed into Unison's network at Tutira via a 4km 33kV line.
Unison Group chief executive Ken Sutherland said the project would provide Hawke's Bay with an alternative power supply - currently all of Hawke's Bay's power was supplied by Transpower's National Grid.
"This is a substantial project for the region, and will further support our strategy of ensuring security and quality of power supply to our customers," he said.