Wind Power from Te Apiti
Project Type: Wind power
Location: New Zealand
The purpose of the project is to construct and achieve commercial operation of a wind generation development of 82.5-96.25 MW in the Manawatu/Ruahine region of the lower North Island.
Project background
The project consists of 55 turbines with a capacity of 1.65 megawatts each. The construction of the project was completed in early 2005. The wind farm is capable of generating enough electricity for 45,000 average-size homes.
The supply of electricity in the New Zealand market is provided mainly through hydro generation with limited storage, the majority of which is situated in the South Island. Most of the load in New Zealand is based in the upper North Island as most of the population and industry is based there. Currently a dual fired gas and coal thermal plant provides the flexibility. If gas is unavailable to do this, the quality and security of supply is ensured by coal fuel or coal fired stations. Therefore the extent to which coal generation is utilized will be reduced by any additional renewable energy generation that is available.
In view of the project’s additionality, an extensive review of the investment additionality of the project had been completed by the New Zealand government.
The review found that the sale of the emission reduction credits was needed to ensure the project would be started. Moreover the project was not announced prior to the availability of carbon financing.
Sustainable development
The New Zealand Government's energy policy objective is “to ensure the delivery of energy services to all classes of consumer in an efficient, fair, reliable and sustainable manner”. The overall outcomes sought include “environmental sustainability” including incorporating the improvement in New Zealand's energy efficiency and a progressive transition to renewable sources of energy. This project assists the New Zealand Government in meeting its energy, renewable energy, emission reduction and business opportunity objectives through significant benefits both locally and nationally result from the project including:
- the provision of greater diversity in the supply of energy for New Zealand
- the fact that the generation of electricity by wind uses a renewable resource
- wind power displaces the need to burn gas or coal to produce electricity, resulting in less carbon dioxide, sulphur and nitrous oxides being released into the atmosphere and
- the development of the wind farm will benefit the local economy during the construction phase and could boost the local tourism industry.
