Power board’s cash

Press, 5 July 1978, Page 21

Power board’s cash

Finance for the feasibility study came from the Central Canterbury Electric Power Board, one of the supply authorities that might be interested in the completed scheme. The money had been budgeted for, even though an offer of $5OOO came from the Christchurch City Council. The general manager (Mr S. E. Slatter) says the board is prepared to pay up to $20,000 towards investigations into hydro development. The scheme is one of three small hydro-electric power projects now being mooted in Canterbury. The Board has been investigating proposals for development of the Waimakariri Basin and a detailed report is expected to be tabled before the board soon.

Another scheme planned for the Hurunui River by the North Canterbury Electric Power Board involves a 40MW power station and the rising of Lake Sumner. As the Clutha Valley scheme will possibly mark the end of the “big dam’’ era in New Zealand, the Government is encouraging supply authorities to invest in local, small schemes. The Government will step in when schemes involve stations of greater capacity than 40MW. This allows, for example, a scheme bn the Hurunui River which could meet most of the North Canterbury Power Board’s demand. Electricity is a renewable source of energy and it takes advantage of the country's natural assets. It is sensible, therefore,

when other forms of energy are becoming increasingly expensive for the country, that New Zealand develop its electricity resources. The profits to be reaped from hydro development are enormous by anyone’s standards. At present tariff levels the annual return from the completed scheme would be $3.7M. In the thirtyfifth year, when the construction loan would be paid off, the cumulative operating balance could be between S3BIM and 51955 M, depending on the rate of inflation. From the thirty-fifth year, all returns would be profit except for the small running costs, and the scheme has an expected life of 50 years — Mike Hannah,