State Will Build Lakes Scheme For Grid Power

Press, Volume CII, Issue 30056, 14 February 1963, Page 10

State Will Build Lakes Scheme For Grid Power

fNeu> Zealand Preu Association)

WELLINGTON, February 13. The Government will accept financial* responsibility for developing the Manapouri-Te Anau lakes power scheme.

The Prime Minister (Mr Hoiyoake) said today that the rights of Comalco Industries Pty., Ltd., to develop power from the Lakes would be replaced by a new agreement providing for certain options on power.

The Government had decided that the development of Manapouri to provide power for the national system was fully justified and should proceed at an early date, he said.

Even if the bulk of Manapouri power were made available for industry, the development at it by the Government merited the highest priority, Mr Hoiyoake said. He issued a statement after discussions in Cabinet and between the Government and Comalco, the aluminium operating company owned jointly by Conzinc-Rio Tinto of Australia, Ltd., and the Kaiser Aluminium and Chemical Corporaition of USA. State Confirmation "Comalco has completed ex. tensive investigations of the power potential of the lakes which have confirmed earlier estimates that this development would provide all the power required for a successful aluminium industry at a co* within the requirements of the industry and well below that available from any other known source in New Zealand.’’ Mr Hoiyoake said. 'The investigations also established conclusively that thia development could provide an economic source of supply for the New Zealand power system. “Our own studies have confirmed this information. It is also clear that the maximum economic advantages from Manapouri power are obtainable from use at 100 per cent, load factor and as near the site as possible to reduce transmission costs. But even for use elsewhere in the grid at system load factor, the economics of this proposed development make it very attractive. "The company, at the same time, indicated to the Gov-

eminent that its own plans for the developsneot at aluminium smelting had not advanced aa rapidly as had been hoped, but that its original objectives still remamed the same: to establish a *neiter in Southland based on Queensland alumina and Manapouri power. "Because of the delay in Comalco plans the Government suggested, and it was mutually agreed, that the terms of the existing agreement be examined. “After detailed investigation. the Government has decided that the development of Manapouri to provide power for the national system is fully justified and should proceed at an early date. In order to fit the development of this station into our long-range plans, the necessary adjustments will be made to the power plans as previously recommended by the Power Planning Committee and approved by the Government"

Mr Hoiyoake said the present agreement, dated January 19. 1960. which was validated by the Manapouri-Te Anau Development Act, 1960, would be replaced by a new agreement providing for certain options on power to the company to replace its rights to develop power from the lakes.

“The company will be aided in its plans for establishing an aluminium smelter by the Government accepting financial responsibility for development of Manapouri, and this could well result in the industry being established in Southland earlier than it might other-

wise have been,” Mr Hoiyoake said. “To the Government, the availability of power from Manapouri on a sharing basis with Comalco will, on present expectations, result in cheaper power than from alternative sources. It will enable the conriruction time of Aviemore station, which has been started, to be extended by about 18 months, and will also enable a deferment of commencement of further stations with no ill effects on future power plans.” In order to get a clearer picture of what this decision meant to the Government, Mr Hoiyoake explained that the construction of the Manapouri scheme to its first stage would cost approximately £3l million to provide nearly 400 megawatts of power. Aviemore station would cost an estimated £22 million to provide less than half this amount of power. Alternative developments to Manapouri in either the South or North Islands were expected to cost substantially more than this, he said. Next Stage Cheaper

Although first stage development was cheaper than other power schemes the completion of Manapouri to stage 11, up to its estimated capacity of 700 megawatts, would be cheaper still, even after allowing for the extra costs of transmission. •‘ln the national interest, even if the bulk of Manapouri power is made available tor industry, the development of this power by the Government merits the highest priority,” Mr Hoiyoake said.

“Company representatives have been invited to New Zealand to complete a new agreement.” This agreement

will be submitted to Parliament for validation later in the year.