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West Coast Electricity Demand Set To Skyrocket As Economy Booms

December 22nd, 2007

Power demand on the South Island’s West Coast is set to jump more than 50% during the next two years, due to Pike River’s new coal mine, Oceana Gold’s mining operations, dairying expansion and other big projects on the drawing board.

If all proposed developments go ahead during the next decade, peak demand on the Coast could more than double to 94MW by 2017.

No other region in NZ is seeing anything like such an explosion in electricity demand growth relative to its population.A report for the Electricity Commission by consultants Covec shows Pike River Coal will add 14MW of new peak load demand by 2008, and Oceana Gold will add almost 4MW.

In addition, planned expansion of two Westland Milk Products plants will add another 12MW of demand by 2011, and the proposed 150ha Kaiata Industrial Park near Greymouth will consume an extra 4MW by 2009.

This is on top of extra demand from dairy conversions and several smaller mining operations. In addition, electrification of the main railway line is proposed within the next decade, which would add a further 11MW to the Coast’s peak demand.

Westland Lines company, Westpower, last week announced plans to build a 20MW hydro scheme on the Waitaha River, south of Ross, which it hopes will help meet some of the Coast’s anticipated new demand.

The company has already done an environmental risk assessment of the proposed run-of-the-river scheme and has engaged consultants to further investigate the environmental implications.

Chairman, Mike Newcombe, says Westpower will also consult with individuals and groups who have an interest in the Waitaha. TrustPower also wants to build a hydro scheme on the West Coast, on the Arnold River near Greymouth, which is the subject of hearings this month.

TrustPower argues the 46MW scheme is needed to help meet the Coast’s power demands and free up electricity for supply elsewhere in NZ, which makes the project of national significance.

TrustPower spokesman, Graeme Purches, notes the Coast has already suffered power outages this year, which would not have happened if there was more local generation. Purches adds up to 20% of power is lost in transmission to the Coast. But the Arnold River is popular with anglers and kayakers, who are leading opposition to the hydro scheme.

Meanwhile, Transpower is seeking Electricity Commission approval for a $27.2m upgrade to the grid on the West Coast, to cope with anticipated demand growth. Transpower is worried the single 110kV line between Reefton and Atarau is particularly vulnerable to overloading and the situation will rapidly get worse unless the lines are upgraded by the end of 2008.

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