Contact Energy Faces Hurdles in Southland Windfarm Proposal

Highlights:

• Contact Energy (NZX: CEN) faces challenges in securing approval for its 55-turbine windfarm proposal in Southland, with consent officials warning of potential "insurmountable difficulties."
• The proposed wind farm, aimed at generating 300MW, has been met with opposition from the West Catlins Preservation Society, citing concerns over the impact on the area’s outstanding natural landscape.
• Contact Energy may need to reduce the size or modify the project to address environmental concerns and gain approval from consenting authorities.

Consent Challenges for 55-Turbine Windfarm

Contact Energy (NZX: CEN) is facing potential setbacks in its bid to develop a 55-turbine wind farm in Southland. Consent officials have warned that the project, which aims to generate 300 megawatts (MW) of electricity, could face “insurmountable difficulties” during the approval process. The turbines, each capable of producing up to 7MW, would have a height of 220 meters. At the time of writing, the company has not disclosed any official changes to the proposal but is aware of the challenges it faces in gaining consent for the full-scale project.

Opposition from Environmental Group

The wind farm has been met with opposition from the West Catlins Preservation Society, which is concerned about the environmental impact of the development. The proposed location at Slopedown is considered an outstanding natural landscape, and the society argues that the turbines could damage the area’s unique environmental qualities. The group has voiced concerns about the project’s potential to disrupt the local ecosystem, affecting both wildlife and the area’s aesthetic appeal, which draws tourism.

Possibility of Downsizing or Modifications

In response to the challenges and opposition, Contact Energy may need to reconsider the scale of the project. Modifying the number of turbines or adjusting their placement could be a viable solution to address environmental concerns and gain the necessary approvals. The company will likely continue discussions with consenting authorities to explore ways of meeting the required environmental standards while progressing with its renewable energy plans.

At the time of writing, Contact Energy has not provided an updated timeline for the wind farm’s approval process.

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