Wind farm proposal for Mt Climie
Report 04.174
Date 13 May 2004
Committee Policy, Finance and Strategy Committee
Author M D Kennedy Project Manager Renewable Energy
Renewable Energy Initiative Update
1. Purpose
To update the Council on the renewable energy developments over the last
year, in particular, the wind energy feasibility studies on Council and adjacent
lands.
2. Introduction
In March 2003, the Council approved investigating the possibility of a wind
farm development at the Belmont Regional Park (report 03.11). Then in May
2003, Council approved the finance for investigating four sites (report 03.312).
One of the requirements in report 03.11 is to report back to the Council in due
course. While Councillors have been regularly informally appraised of the
feasibility study work, this report is the first comprehensive update. It covers
the investigation work over the last 12 months.
3. Background
One of the key elements of “Towards a Sustainable Region” is sustainable
energy. Attachment 1 is an extract of report 03.11, which sets out some
background to the renewable energy project.
Greater Wellington is in a unique position to assist in the development of
renewable energy resources. As a substantial landowner and land manager in
the region, the Council may be able to influence sustainable wind energy
development through making some of its land available for wind generation.
At some of the sites, the adjacent landowners have indicated they may also
offer their land for wind generation purposes.
The need for new electricity generation has intensified over the last year,
particularly with the recent cancellation of Meridian Energy’s Project Aqua
which would have yielded over 500MW. While an electricity shortage was
averted last winter due to the late filling of the hydro storage lakes, the pressure
remains to find new energy sources. As the Institute of Professional Engineers
of New Zealand noted in its March/April 2004 magazine, “with New Zealand’s
energy usage doubling every 22 years for the last century, it is imperative that
the extent of existing energy resources is known and steps taken to find new
ones”. Over the last year, work started in New Zealand on several new
generating plants including two to be powered by wind energy. The need
though for around about 150MW of new generation each year remains.
In October 2003, the Ministry of Economic Development (MED) published its
New Zealand Energy Outlook to 2025. It predicts that wholesale electricity
prices in real terms will climb from 6.3 cents per kilowatt hour in 2005 to 7.2
cents per kilowatt hour in 2020, and then 8.4 cents per kilowatt hour in 2025.
The MED also notes that there could be price volatility of approximately ± ½
cent per kWh in any one year.
In report 03.11, provision was made for carrying out feasibility studies on up to
four sites for wind generation. Initial investigations identified three potentially
very good sites. As a result we decided to focus on these three sites and not
attempt to investigate a fourth (lesser) site.
4. Progress with wind energy feasibility studies
While it is stating the obvious, it is clear that if the wind resource is inadequate
then it is not worth taking investigations further. Hence in the initial phase of
the study we concentrated heavily on getting the equipment in place to quantify
the wind resource. More recently we began looking at the other components
which feed into a feasibility study (e.g. landscape issues, required
infrastructure, effects on other users, ecology etc). To assist me in preparing a
feasibility study we have set up a cross-divisional team of officers. The role of
this team is to provide advice and expertise to the project.
In this report we have considered the wind resource first followed by the other
key issues. In order to provide you with a rough comparison between the
capabilities of the various sites, the report assumes a one megawatt wind
turbine would be used, but the actual size would depend on the developer of
any wind farm.
4.1 Puketiro
This site is to the east of the Battle Hill Farm Forest Park, the area is currently
used for exotic forestry, but the ridges where the wind turbines could be placed
tend to be more open.
4.1.1 Puketiro wind resource
Wind recording has started at the site but because of earlier technical
difficulties (now resolved) there is inadequate information so far to draw any
conclusions about the long-term wind resource.. However, given the proximity
of the area to the Belmont site and their similar elevation it is expected that the
average speed of the two sites would also be similar. Sufficient wind data
should be available by December this year or March next year, depending on
how well it correlates with the Belmont wind data. A preliminary layout for a
wind farm indicates that there could be 20 wind turbines of one megawatt each
positioned on the Council’s land. Discussions are continuing with some
adjoining landowners which could see a combined site supporting up to 62
turbines of one megawatt capacity.
4.1.2 Puketiro other key issues
Access to the site would depend on the physical extent of the wind farm. Three
possible access routes have been identified and these will be refined during the
coming financial year.
An internal assessment is being made of ecology and landscape issues.
Other resource studies at Puketiro would be left to the developer of the wind
farm, should the Council proceed with making the land available.
4.2 Mt Climie
4.2.1 Mt Climie wind resource
Anemometers have been recording wind speeds at this site since late August
2003. Usually 12 months of data is required to obtain a reliable average wind
speed. An average wind speed of close to or greater than 10 metres per second
at the turbine hub height is necessary to make a wind farm economically
viable. Based on six months of data, the predicted long-term average wind
speed 50m above ground level at the Mt Climie site is 13.74m/s. The
executive summary of the preliminary wind speed resource assessment report
prepared by PB Power is included as Attachment 2. PB Power was asked to
calculate an annual capacity factor for a Vestas V47 (660kW) wind turbine at
the site and this came to 64.6%. The Vestas 660kW turbines were chosen for
this exercise simply because there is public information about the Vestas V47
output from the Tararua wind farm. At the Tararua wind farm it is understood
that the capacity factor is just under 50% on a long-term basis. As a further
comparison, the best monthly average wind speed reported by the Tararua wind
farm is just over 12 metres per second. In December 2003, it averaged 15.7m/s
at Mt Climie. The Tararua wind farm is already recognised internationally as
being one of the best performing wind farms as far as the capacity factor is
concerned. A preliminary layout for the Mt Climie site indicates it could
support up to 63 turbines of one megawatt capacity. The land is entirely
Council owned.
4.2.2 Mt Climie other key issues
There is an existing access road to the Mt Climie site but this passes through
the Tunnel Gully recreation area and this part of the road should be avoided if
at all possible. Two other routes have been identified and these will be
evaluated in more detail over the next few months.
Because of its elevation – about twice the height of the high points of the
Belmont site – the main ridge at Mt Climie can be seen from many parts of
Upper Hutt City and other parts of the region. Resolving landscape/visual
issues will be particularly important for this site. From an ecological point of
view, the Mt Climie site is a sensitive area and Council staff will undertake an
ecological evaluation in the 2004/05 financial year.
Noise is unlikely to be an issue, the nearest houses are 2.5km from the site and
at a much lower elevation. There are no aviation constraints. Vector, the local
power network utility, is currently evaluating how the power could be taken
from the site.
Several communications structures are located at Mt Climie and discussions
are continuing with the owners to ensure any wind farm does not conflict with
their operations.
4.3 Belmont
4.3.1 Belmont wind resource
Wind speed is being recorded on a 70m mast incorporating several sensors.
There is only three months of data and the average wind speed so far is just
over 10m/s measured 70m above ground level. This is similar to the long-term
projections derived from data recorded at the site a few years ago by another
organisation. Twelve months of data will be available early in 2005, together
with about seven months of data from three secondary anemometers near the
corners of any development enabling a more accurate projection of the longterm
wind resource. Attachment 3 is a summary of the wind information
obtained to date.
The Belmont Regional Park land has the capability of supporting up to 81 one
megawatt turbines. If two private adjoining landowners’ land is suitable for
wind turbines, then the total capacity could increase to 108 megawatts.
4.3.2 Belmont other key issues
There are several owners of the Belmont park area and although discussions
are continuing with them, there are no agreements in place at this stage to
allow for the full development of the 81 turbines. Clearly, any development
would need the landowners agreement so this is a key factor in determining the
feasibility of the site. Hutt City Council are a key player in this site and we
intend to continue to work closely with them and the other landowners over the
next 12 months. Our objective is to resolve these issues in the next financial
year.
There are several access roads to the site and the study to determine the most
appropriate is ongoing. A key factor is to minimise inconvenience to
residential property owners.
Initial contact with local Iwi has been positive but they are awaiting more
details of the proposal. The Friends of the Belmont Regional Park are being
kept informed of progress.
A recreation and tourism study is underway and should be completed in July.
The area identified as potentially being suitable for wind generation is above
the 300m contour and most of the land is open grassland. Taking account of
the ecology is important and a study is expected to be completed in July. A
bird study is scheduled for completion in May.
An archaeological study is being undertaken as part of the Belmont Regional
Park planning process and this may be able to be utilised for the wind energy
feasibility study.
The aviation study has been completed and based on the preliminary wind
turbine layout and size, no particular issues have been identified. The final
layout and turbine size for any wind farm though would still be subject to a
further check.
5. Other issues
It was recognised last year that some of the Council land was originally
obtained for water supply purposes and this had limitations imposed by the
Wellington Regional Water Board Act 1972, with regard to wind energy
developments or any other electrical development, such as a run of river mini
hydro. Accordingly, a Water Board Functions Bill has been prepared and
submitted to the House of Representatives. The Bill is expected to be
introduced into the House at about the time the Council considers this report.
At this stage, the best advice is the Bill could be enacted by the end of 2004.
Work is continuing with landowners who adjoin the Council’s wind energy
sites and who have indicated they would like to consider development on their
own land. Some economy of scale aspects could result from this. Draft
landowner agreements have been prepared for consideration by the various
landowners.
There are ongoing discussions with other interested parties such as the City
Councils, Transpower, and the local network provider Vector.
6. Discussion
The work so far suggests that all three sites mentioned in this report may
achieve the minimum wind speed of about 10m/s required for a wind farm to
be economic at current electricity prices. Thus, it is likely that any decision to
proceed will be based on factors other than the wind resource.
From a wind resource perspective, the most outstanding site of the three is
undoubtedly Mt Climie. Of the possible 63 turbine locations at Mt Climie,
approximately 40 could be subject to a wind resource that will allow a capacity
factor of approximately 65%. For 8% of the time, the wind speed is above
90km/h when turbines are normally shut down compared with 1% or less in a
more average New Zealand wind generation situation. Harnessing some of this
energy will increase the capacity factor. Provisionally, the balance of the
turbines could be located on a ridge of slightly lesser elevation than the main
ridge, but will still be subject to a very good wind speed. With one megawatt
turbines and say an average capacity factor of the whole site of 55%, then the
site has a capability of producing 300 gigawatt hours of electricity a year. To
put this in perspective, it is sufficient to power about 35,000 homes or one third
of those in the Wellington metropolitan area.
As a means of abating CO2 under the Kyoto Protocol, a wind farm at Mt
Climie could abate 180,000 tonnes of CO2 a year. Even so, there would be a
number of technical challenges in building a wind farm in such a high wind
speed regime.
The ecology is another aspect of concern and the full feasibility study will
include a section on this.
The Belmont site is expansive but it has a number of issues that still have to be
resolved and it is relatively close to some urban areas. The wind data to date
suggests that the site may just be economic.
Puketiro is expected to have a wind resource similar to that at Belmont, but
unfortunately technical difficulties have limited the wind data so far. The
Council part of the site is well removed from any dwellings and it should be
possible to find a suitable access.
During the year, there has been several approaches from wind energy
generators. If conditions are right, there will be significant interest in any
opportunity the Council may offer for development on its land.
7. Other renewable developments
Council is continuing work on the RPS solar and energy efficiency goals. The
most promising alternative source of local energy generation in the future will
be solar hot water heating systems for households. These systems will become
increasing attractive as the price of electricity increases. There is a funding
package of loans currently available from EECA for households that wish to
invest in such a system. Additionally, central government is developing policy
on standardising the interconnections between the national grid and small scale
'distributed generation'. This policy work could lead to increased local
renewable energy generation due to certainty regarding the 'sale' of excess
generated electricity to the nation system.
During the year, various literature articles have been reviewed to see what may
be of direct interest to the Council. The only item of note is the research in
Britain to generate electricity using sea currents. At present, this work is
experimental but shows some promise for areas such as Cook Strait.
Commercial development at prices that may be economic in New Zealand
though is still sometime away.
8. Next steps
An approximate timetable for finishing the technical components of three
feasibility studies is as follows:
- Mt Climie November/December 2004
- Puketiro March or June 2005
Belmont will be subject to the completion of the Belmont Regional Park Plan
but the land is not affected by the Wellington Regional Water Board Act. Both
the Mt Climie and Puketiro sites are subject to the Wellington Regional Water
Board Act and therefore the new legislation is required before development
could progress at either site. The Forest Lands Plan also needs to be completed
as it covers the Mt Climie and Puketiro areas.
Once the Council has received the feasibility studies and if it decides to
continue with the development, then the Council may choose to invite public
submissions for each site. Following this, if the Council finds favourably,
proposals could be invited for a wind energy development licence at each site.
9. Conclusions
New Zealand’s appetite for electricity industry continues with the need for
about 150MW of new generation each year. With Meridian Energy now
deciding not to proceed with its Project Aqua, there are no large scale
developments on the table that utilise New Zealand’s renewable resources.
The fall back position without renewable energy being used for new electricity
generation developments will undoubtedly be coal, possibly in combination
with imported liquid natural gas if there are no new gas discoveries.
Of the three sites investigated so far, the wind energy resource for Mt Climie is
confirmed and initial indications for Belmont are promising. There is
insufficient data from the Puketiro site so far to give a firm opinion. Progress
is being made on investigating other issues for all three sites with a view to
concluding the feasibility studies in the next 6-12 months.
Renewable wind generation can provide a significant part of the new
generation required in New Zealand over the next 10-20 years. It appears that
there will be an opportunity for this Council to make a difference.
10. Communications
It is suggested the Council issues a media release following consideration of
the report.
11. Recommendations
That the Committee:
1. receive the paper and note its contents.
2. note the revised dates for completion of the three feasibility studies
mentioned in the report.
Report prepared by: Report approved by:
Murray Kennedy Rob Forlong
Project Manager
Renewable Energy
Divisional Manager
Landcare
Attachment 1: Additional information about the sustainability aspects in report 03.11
Attachment 2: Executive summary of the preliminary wind speed resource assessment
report prepared by PB Power
