Karioi power plan grows six-fold

Ruapehu Bulletin, Volume 8, Issue 376, 5 March 1991, Page 2

Karioi power plan grows six-fold

From page 1 pollution-free energy, the upper scheme would create six kilometres of new clean waterway as well as the clean water lake, and taking away the bulk of the acidic Whangaehu water would mean that part of the river will run clean, being fed by sweet water tributaries below the intake. The consultants were asked about the prospect of an eruption on Ruapehu, to which they replied that a system to shut off the tunnel intake would be built, similar to the Whakapapa intake system, to avoid the tunnel being filled. The second part of the presentation was on the financial aspects of the scheme. Costs for the

scheme have been estimated at below $3000 per kilowatt for the upper stations, below $l800/kw for the Whangaehu Station and $2000/kw for the two combined, though the lower stage costs would depend on tunneling costs, which would be better estimated following geological surveys. Investment opportunity The total cost of the combined scheme is estimated at $120 million, half of which would be spent on wages and salaries for construction workers, who would live in the surrounding areas during the three-year construction period. About 100 people would be employed.

The scheme was presented as an attractive investment opportunity with figures given on the return on investment, given the cost estimates and energy prices of the day. There was some discussion on New Zealand's present and future energy use and production, with the point made that the government has pledged to control carbon dioxide emissions in the future which would put pressure on thermal power (oil, gas, coal) production costs. This would in effect make hydroelectric power generation more attractive, the meeting was told. The greatest financial risk of the scheme was the fixing of construction costs, which the meeting heard would be the biggest problem,

but not insurmountable. Yet to be worked out is who the equity partners in the scheme would be. The meeting heard that the King Co,untry Electric Power Board and Midwestern Powerco, the Wanganui supply authority, would be involved and that Karioi Pulp mill could be a logical partner. Electricorp would not be "invited" said Mr Till.

"We want to make them less powerful, not more," he said. If it goes ahead the scheme would be equivalent to the biggest private scheme in the country, yet still small by Electricorp's standards. A resolution supporting the scheme as presented in principal was passed unanimously by the meeting.