Contact Energy's proposed Tauhara geothermal project near Taupo faces a board of inquiry after an order from Environment Minister Nick Smith.
The listed (NZX:CEN) electricity retailer's application was the first project the newly formed Environmental Pro
Contact Energy's proposed Tauhara geothermal project near Taupo faces a board of inquiry after an order from Environment Minister Nick Smith.
The listed (NZX:CEN) electricity retailer's application was the first project the newly formed Environmental Protection Authority (EPA) has reviewed.
The first stage of the development of the Tauhara steam field near Taupo, a $100 million, 23 megawatt geothermal power station, is in advanced stages of commissioning, but the 240MW phase two project needs permission.
Contact filed for resource consent in February.
At the time of launching the authority in October last year, Mr Smith said inevitably council decisions were appealed to the Environment Court, dragging out the process for years.
Today, Mr Smith said a board of inquiry chaired by an Environment Court Judge was the most appropriate way to deal with the "nationally significant" proposal.
Mr Smith said the EPA was able to consider Contact's application directly, without input from a regional authority and meant a decision must be made within nine months of public notification.
"Appeal rights are also limited as the Government’s objective is to do these major projects once and do them properly without years of litigation,” he said.
The Resource Management (Simplifying and Streamlining) Amendment Bill came into effect in October last year, in the first part of a wider RMA reform.
Designed to remove costs, uncertainties and delays, changes included removing anti-competitive objections, streamlining processes for projects of national significance, creating the EPA and improving plan change processes.
At 240MW, the Tauhara II geothermal station was nationally significant, as it would be able to provide power to homes in an area as big as greater Wellington, he said.
Contact welcomed the decision to refer the application to a board of inquiry.
Managing director David Baldwin said in a statement the decision recognised the national significance of the project and the contribution it would make to a secure, renewable electricity supply for New Zealand.
If New Zealand was to increase the amount of renewable electricity generation, it was important that major projects could be consented and constructed without delay.
