Right place, price and wind make wind farms economic
“It’s great that we can now identify the secrets of the New Zealand wind industry’s success,” says Fraser Clark, Chief
Executive of the New Zealand Wind Energy Association.
A new report from Deloitte explores the economics of wind farm development in New Zealand. The report will be discussed
at tomorrow’s NZ Wind Energy Conference in Wellington.
The report shows that identifying and consenting the right sites, maximising yield, and capturing favourable market
conditions and exchange rates were critical factors in making New Zealand’s recent wind farms economically viable.
“New Zealand developers’ success in building and operating economically viable wind farms is recognised
internationally,” notes Mr Clark. The Chief Executive of the multinational engineering giant Siemens AG recently pointed
to New Zealand as the reference for cost effective renewables, noting to Newsweek that the company has proven here that
if you build in favourable conditions ‘wind farms can be profitable at the same price that is paid for other energy
sources’.
“There has been considerable debate about the cost of wind energy in NZ. Until now we have had to interpret how overseas
data might apply to New Zealand’s specific market and economic environment,” says Mr Clark.
“This new report draws on actual New Zealand data to give an accurate picture of the key drivers for successful local
investment.”
“Wind generation has increased 10 fold in the last 6 years, and wind now supplies 4% of New Zealand’s electricity. In
the last 18 months, over NZ$300 million has been invested in new wind farms.”
“The wind industry is actively investigating and consenting new wind farm sites across the country. These sites will
become sources of competitively priced electricity generation – and contribute towards achieving the Government’s target
of 90% renewable electricity by 2030 – when the conditions are right for their development,” says Mr Clark
Over 60 nationally and internationally recognised speakers, including Environment Minister Hon Dr Nick Smith, will
address delegates at the NZ Wind Energy Conference, which begins Tuesday 12 April. The speakers will cover a broad range
of topics including international wind energy market developments, opportunities for wind energy in the NZ electricity
market, project economics, challenges in consenting
and constructing wind farms, technology developments and integrating wind energy into the electricity system.
NOTES
Economics of wind development in New Zealand is a report prepared by Deloitte for the New Zealand Wind Energy Association. It can be downloaded from:
About the NZ Wind Energy Conference
The annual NZ Wind Energy Conference is organised by the New Zealand Wind Energy Association. It is accompanied by a
trade exhibition.
The conference programme can be viewed online at:
Around 300 delegates are expected to attend the conference, coming from across New Zealand, Australia and overseas. Over
40 companies are sponsoring or exhibiting at the conference, including wind turbine suppliers GE, Goldwind, REpower,
Siemens, Suzlon and Vestas along with electricity generators Meridian Energy and Mighty River Power.
When and where
Tuesday 12 and Wednesday 13 April, Wellington Town Hall, Wakefield Street, Wellington.
About NZWEA
The New Zealand Wind Energy Association (NZWEA) is an industry association that works towards the development of wind as
a reliable, sustainable, clean and commercially viable energy source. We aim to fairly represent wind energy to the
public, government and the energy sector. Our members include about 80 companies involved in New Zealand's wind
industry, including electricity generators, wind farm developers, lines companies, turbine manufacturers, consulting
firms, researchers and law firms. For more information visit www.windenergy.org.nz.