This was announced today by WEL Networks’ chief executive, Dr Julian Elder, and Meridian chief executive, Tim Lusk.
WEL began planning the $200 million project three years ago.The company gained resource consent from the Waikato District Council and Waikato Regional Council in May following a four-week hearing before four independent Commissioners.
The granting of the consents were subsequently appealed to the Environment Court by three submitters. WEL is now working through a mediation process with the appellants, and an Environment Court hearing is expected to take place early next year if the appeals cannot be settled.
Dr Elder said if the Environment Court finally signs off the project, Meridian and WEL will form an alliance.This will enable Meridian to build and operate the turbines, estimated to cost $160 million. WEL will own and manage the electrical lines and sub-station within the wind park and the high voltage line connecting the wind park to the national grid which in total will cost around $40 million.
Meridian will own the electricity generated by the turbines while WEL will generate new revenues from its electrical works. Dr Elder said the alliance also means the upgrading of lines to 110kv serving the Raglan area could be accelerated by up to eight years, bringing improvements to the reliability of supply to the area.
Meridian, as a major generator and retailer of renewable electricity, and owned by New Zealanders, will bring significant value to the project. Mr Lusk, said Meridian was delighted to have been chosen by WEL for the project.
“Meridian and WEL have a shared vision for creating a sustainable solution to the Waikato region’s power needs,” he said.
“We are proud to partner with WEL and look forward to building a project the region can be proud of.”
Meridian currently operates more than $6 billion worth of generation assets including nine hydro stations, two wind farms, with two more under construction, and has consenting processes underway for three other wind farms.
According to Dr Elder, discussions had been held with several selected potential partners but Meridian had proved to be “the best fit with WEL.
“Meridian complements WEL’s vast experience in electrical network design, build and construction for projects like this,” he said.
“Meridian Energy is an ideal partner for us and the region.
“Meridian’s state ownership was consistent with WEL’s community-ownership, with both companies committed to renewable energy resources and the communities they operate in.
“It was critical we selected the best partner with the right culture, a commitment to sustainable and renewable generation, and experience as a major wind park developer and operator,” Dr Elder said. Meridian’s experience in negotiating for turbines on the international market means 28 turbines for Te Uku can easily be added into Meridian’s supply contracts.
Meridian’s commitment to the communities it operates in will fit with WEL’s continuing focus on community outcomes.
WEL will retain a leadership role for these activities. Dr Elder said the alliance agreement gives WEL a leadership role to ensure the regional and community benefits are delivered by the project and remain responsible for dealing with community matters as far as the wind park is concerned.
“This remains for the life of the wind park and its ultimate disestablishment.”
Dr Elder said one of the conditions of the resource consent requested by WEL requires the formation of a community liaison group in the greater Raglan area. This remained a priority and Meridian has experience of working in community liaison groups through its other projects.
The liaison group would have been established by now but was delayed by the appeals to the Environment Court. Both WEL and Meridian would take joint responsibility in keeping the community fully informed.
Meanwhile, Dr Elder said WEL would continue to engage with the three appellants opposing the project and continue to lead the Environment Court process. WEL’s owner, the WEL Energy Trust, has been briefed on the Meridian alliance and reaction from trustees had been extremely supportive and positive.
WEL has also communicated to over 2000 households in the greater Raglan community with a new edition of its Wind Park Update newsletter. More than 200 letters have been mailed with copies of the newsletter to community leaders throughout the region.
Letters were also mailed to all submitters to the resource consent hearing, to the appellants, and to Waikato District and Environment Waikato councillors.
For more information contact:
WEL NETWORKS
Dr Julian Elder
Chief Executive
WEL Networks Limited
Telephone 07 858 1448
MERIDIAN ENERGY
Claire Shaw
External Relations Manager
Meridian Energy
Telephone 021 370 677