Matakitaki Hydro Power Proposal

Plans announced by Network Tasman in October 2008 to harness one of Murchison's wild rivers, the Matakitaki, for hydroelectricity brought tourism operators out fighting. The company has now advised that its iinvestigations show that the upper reaches could be better suited to hydro because of their geology than the middle reaches most used for outdoor recreation and tourism.

Response to Network Tasman update

Local tourism operator Steve Wood remains strongly opposed to "losing the Matakitaki river so that the Japanese owners of the regions largest electricity consumer (about 10% of the regions electricity) can have increased profits"

Hydro scheme on Matakitaki River may avoid kayak spots

Nelson Mail

Initial investigations into using the Matakitaki River for hydro electricity generation have shown the main kayaking stretches are the least preferred, says Network Tasman.

The lines company has completed "pre-feasibility investigations" which show that the upper reaches of the river could be better suited to hydro because of their geology, said Network Tasman board chairman Ian Kearney.

The company's investigation into the hydro scheme has drawn opposition from kayakers, anglers and Murchison tourism operators, who say that if it goes ahead, it will ruin the river and lead to environmental disaster. Mr Kearney said the company had found that generation prospects at Blue Rock Gorge and middle sections of the Matakitaki are the least preferred for generation due to geological conditions. They were also the river sections considered to be the highest value by river users such as kayakers and fishers, he said.

The company had received a variety of reports including electricity demand forecasts, options for generation schemes, geological features, river flows, ecological values, fish passage and river user values.

Mr Kearney said kayakers placed a high value on the river sections downstream from Horse Bridge and through the Blue Rock Gorge. Consideration of the middle and Blue Rock sections of the river for generation could be many years down the track, if at all, he said.

It was also unlikely that the Glenroy River would be suitable for hydro generation because of sediment load. The environmental, tourism and fisheries effects on the rivers will be addressed through studies on river flow, fish passage and environmental impacts.

"This information will take over two years to collect as it is necessary to measure river flows for at least 24 months. The focus of further investigations will be generation prospects on the upper river, upstream from Horse Bridge.

"This is a section of the river with very limited kayaking use and lesser use by fishers,"Mr Kearney said.

The Network Tasman Trust (which owns Network Tasman on behalf of its consumers) will hold a public meeting. End users of the Network Tasman distribution system are welcome to attend.

Venue: Club Waimea

345 Queen Street, Richmond

Date and time: 19 December 2008 at 9.30am

The magic of the Matakitaki

Sally Kidson, Nelson Mail

The Nelson Mail reported that the plan to harness this one of Murchison's wild rivers, for hydroelectricity had tourism operators gearing up for another fight and wondering where it will all end.  Parts of the article in the Nelson Mail are reproduced below, or read the full Nelson Mail report, The magic of the Matakitaki

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Network Tasman's proposal

Network Tasman, based in Hope, is investigating a power scheme on the Matakitaki River.

Network Tasman argues that whatever scheme, if any, it comes up with for the Matakitaki, it will be positive for the region as a whole and fit in with government policy for the country to focus on sustainable electricity generation.

Network Tasman has bought between 200 and 300ha from two landowners in the Matakitaki Valley and is looking at the viability of developing the river for hydro purposes. The company also intends looking at options for wind and solar generation, estimating it could supply 20,000 homes.

He is quick to point out the company is still in investigation mode, but says it is looking at the feasibility of running two 15MW stations on the river. Whether the schemes would be run of the river, involve a dam, or be a combination of both is being looked at, he says.

The company aims to complete the pre-feasibility study by the middle of next year and if it decides to push on, it could be another one or two years before it applies for resource consent.

He thinks that most people will see the scheme as positive. "It's going to reduce (transmission) loss. It's going to make the Nelson region self-sufficient and it will be good for development."

Mackey says he understands that some people would rather rivers be left as they are. "We just can't lock everything up, because one day the lights will go out, unless we want to use coal or something like that, or go to nuclear generation."

Network Tasman chief executive Wayne Mackey explains that the South Island does not generate enough power to meet its needs now and into the future. The top part is no exception. More power generated closer to Nelson is needed to secure the supply, meet growth and demand, and protect consumers from higher electricity prices.

Developing generation closest to where it is used avoids electricity being lost through lines when it is transmitted over long distances.

Mackey explains that hydro is attractive for generators, as it is proven and marries well with other sources like wind and solar.

It is also seen as renewable, which is important, as the Government, in a bid to mitigate climate change, has set a target of getting 90 percent of the country's power supply from renewable sources by 2025.

Mackey says other sources considered renewable, like solar and tide, are still too expensive to develop and are likely to remain so for at least the next five years.

Besides five publicly-identified hydro schemes under investigation in the top of the South Island - Trustpower's Wairau and Arnold schemes, Meridian's Mohikinui, New Zealand Energy's proposal for the Matiri and Network Tasman's idea for the Matakitaki - Mackey says he knows of three other schemes, but won't give details of what or where they are.

Mackey says Network Tasman was actively looking at schemes in the Buller years ago and had to abandon them after the electricity sector reforms of the 1990s, which prevented lines companies from generating power. Those rules have now been relaxed.

Local reaction

• The announcement of the Network Tasman's  investigations prompted one "crusty old paddler", Andrew Scott, to warn in a letter to the Nelson Mail that the paddling and outdoor community would run a "die-in-the-ditch" campaign to save the river.
• Murchison's New Zealand Kayak School owner Mick Hopkinson is known around the world for his kayaking skills, and   has carved a life and business out of the 14 rivers that slice through the Buller catchment. Having paddled some of the world's wildest white water, after learning to paddle on the polluted waterways of his native Yorkshire, he says he understands how special the Buller catchment is. It's a drawcard not only for its wildness, but for its accessibility and the sheer variety of runs it offers paddlers of all skill levels, he says. "It's one of the top kayaking destinations in the Southern Hemisphere." Hopkinson worries people are still stuck in the "Ministry of Works mindset", where they see power schemes as being for the public good. "These are private companies He's also upset that hydro is being portrayed as benignly renewable. While the water may be renewable, the physical schemes have a finite life, he argues.  He's just come back from a trip to the United States, where millions is being spent on decommissioning old schemes and restoring the rivers to their natural state.
• Nelson Canoe Club conservation officers Brandreth and Pauline Hervey say the Matakitaki would be rated "nationally significant" if such a rating system existed. "Paddlers will come back to this river again and again like few others." Brandreth Hervey says the river is so well used, diverting it for hydro use would be comparable to taking away a big section of Nelson's Dun Mountain Track from mountainbikers, runners and walkers. The river is paddled by kayakers from around the country and can be run at any flow. He says the club is not anti-hydro, but feels there are other, more efficient ways of generating and managing power than destroying a "hugely important resource".
• Steve Wood runs a luxury lodge, Korimako, in the Matakitaki Valley near the old hydro scheme at Six Mile. It has breathtaking views back down the valley to the Matiri Valley. His clients come from overseas for the wildness and the fishing. "Do you know what the translation of Matakitaki is?" he asks. "To gaze at with admiration." Wood doesn't want to think about that view polluted with lines carrying power from the valley to the outside world. But, while he and his wife, Wendy, have spent energy, passion and money building up their business, he's adamant the financial impact that taming the Matakitaki for hydro would have on his business is not his main concern. He moved to the area from the UK because of its "free-flowing rivers and what they mean". "It isn't about the money," he says repeatedly.
• His concerns are mirrored by a group of tourism operators in Murchison's busy Rivers Cafe. When asked what impact the schemes could have on tourism in the area, cafe owner Jude Alford doesn't hold back. "Wouldn't you say it would kill it?" she says. "I would say it would be dead, in a nutshell, wouldn't you?" The others sitting round the table agree. It is the rivers and their wildness that draw visitors and keep pulling them back that is the common message. The Matakitaki is vital because of its accessibility and fishing and kayaking opportunities.
• Shirley Bigden, of Murchison Lodge, says she doesn't want to be seen as a "nimby" (not in my back yard) sort. She objects to the piecemeal approach to generation she sees. "It's not just the Matiri and the Matakitaki. We had the Gowan last year, and the Mohikinui is happening on the West Coast. It seems like it's not about power. It's a lot of little schemes trying to make power so they can make money. I'm not sure why we would want to sell out New Zealand's biggest resource to make power."
• Murchison District Community Council chairman and Tutaki Valley farmer Simon Blakemore says reaction to Network Tasman's plans is mixed, and not everyone feels as hot about the issue as those with a direct connection to the rivers. While unable to judge which way the bulk of the community feels, he says many are reserving their judgment until they see details of what Network Tasman proposes.

National Radios: Morning Report

A transcript of an interview on National Radio's Morning Report is reproduced below. Ian Kearney, Network Tasman Chairman, was interviewed by Geoff Robinson

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Geoff Robinson: A hydro Electric power scheme that could cost up to 100 million dollars is being proposed for the Matakitaki River near Murchison. Network Tasman says the scheme, along with developments in solar and wind generation could provide power for up to 20,000 homes. Construction could begin as soon as 2011. Chairman of Network Tasman is Ian Kearney.

Ian Kearney: There are a number of different options, some of which involve dam and some which involve what’s called run of the river, which is really a small weir and diversion of part of the river into a channel and some which are a bit of a combination. We’re not talking about big dams, we’re talking schemes of around maybe 15MW, possibly 2 of them and that’s not big dam territory if there was a dam. We really need to talk to quite a few of the possibly affected groups like canoeists and DoC etc before we firm up which is the better option to go for.

Geoff Robinson: As I read it, you’ve bought 300 Ha of land for this hydro deal but you haven’t actually done the feasibility studies to see whether you can put a hydro dam there – is that right?

Ian Kearney: It’s actually one of those chicken and egg type problems Geoff, where we’ve done preliminary analysis, there has been analysis done on the Matakitaki River on these sections certainly since the 1950’s, there was a major report in the 1970’s, there’s a fair bit of existing information and the opportunity arose to buy one of the key properties at sort of current market value – so we took up that opportunity. And now we’ll continue with our investigation and consult with various groups and work up the feasibilities.

Geoff Robinson: So you’ve laid out a bit of money then, on a sort of hope?

Ian Kearney: Ah no, it’s not a hope, we believe it’s a reasonable risk to take, potential for generation is well known and we believe that it’s better to at least to have the key parcels of land under control rather than going ahead spending a lot of money on development and resource consents, and still then have hope that you can acquire the land.

Geoff Robinson: This, as I understand it, is not a proposal on its own in a sense, you’re also looking at wind and solar generation in order to make effectively the top of the south island independent in power – is that it?

Ian Kearney: Well, towards independence. As everyone knows, in New Zealand, Nelson is the sunniest spot in New Zealand, so solar is going to work, as it becomes more economic, Nelson should be one of the earliest places to introduce it. We do actually have a site which is suitable, we believe, for smaller scale solar generation and for trials and as the technology for solar improves, we believe it will be viable in the next 5 to 8 years.

Nelson Mail

The Nelson Mail announced a proposal by Network Tasman for a hydro scheme on the Matakitaki River near Murchison.

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Network Tasman is proposing a hydro scheme on the Matakitaki River near Murchison, as well as solar generation and wind power to make the region's supply more secure and provide for growth. The Richmond-based electricity lines provider announced the multimillion-dollar plans yesterday, estimating they could jointly power about 20,000 homes. Network Tasman supplies electricity to about 35,000 households at present through retailers such as Contact Energy, Meridian and TrustPower.

Chief executive Wayne Mackey said the company's ability to move into power generation was prevented by legislation that Parliament was expected to change soon. "We want to be ready to act once that happens. We intend to formalise our ideas and conduct some pre-feasibility studies to at least indicate whether the projects would be commercially and practically viable."

Network Tasman chairman Ian Kearney said between 200 and 300ha had been bought from two landowners near Murchison at "market rates" during the last few weeks so viability studies could proceed on a hydro scheme. "You can't make decisions on viability without having the land sorted out in the first place. It's exciting as it's the first step in what we hope will be a significantly beneficial project for our region."

The hydro scheme would be the biggest of the three proposals, generating up to 30 megawatts. A further 20 megawatts would come from each of the solar and wind initiatives.

Mr Kearney said several locations on the Matakitaki River might be suitable for the hydro scheme, including the Blue Rock and Mammoth Flat areas. A pre-feasibility study would cost between $200,000 and $300,000, while a full feasibility study would be nearly $1 million. Construction of the scheme itself could be "close to $100 million", he said. "The company has a reasonable capacity to raise funds. At present we have no debt and we believe if it's a good, viable scheme, funding it won't be a problem. There will be a number of people happy to partner with us."

Hydro proposals in that region have met stiff opposition in recent years but Mr Kearney said the Buller River conservation order did not extend to parts of the Matakitaki. River users such as kayakers would be concerned but the company hoped to consult and work through those issues. Network Tasman would not be undertaking the work if it wasn't fairly confident it had something that was workable, achievable and viable, Mr Kearney said. "We're owned by local consumers. It's fair to say we believe it is the right thing for locals. "The Government has been strongly stressing the need for renewable energy. The last winter has shown us we have a problem." Mr Kearney said solar power was a "hot topic" at the moment, with about $2.3 billion a year being spent internationally on research. Solar generation wasn't economic yet, but it was likely to become so in the medium term, he said. "We sort of see solar energy to be a little bit like where we saw fibre-optic cable and broadband in 1998. "The big advantage with solar energy is you're not nearly so restricted location-wise. The main requirement is to be close to a substation or transmission lines." Network Tasman has a site near Brightwater that it intends to use for trials and small-scale solar development. The wind initiatives will take place outside the region, as investigations carried out by Network Tasman in the 1990s found that Nelson's average wind speed was too low for power generation to be economic. Mr Kearney said no sites had been identified but Canterbury and the West Coast were possibilities. The projects could all be generating power by about 2017. Construction on the hydro scheme could start within the next three to five years, Mr Kearney said.