Cheaper Electricity for the Chatham Islands

The completion of a $10 million wind turbine project in the Chatham Islands is set to lower local electricity prices and reduce carbon emissions, Associate Minister for Regional Development Mark Patterson says. He will officially open the project on the Chatham Islands this Thursday.

According to Mr Patterson, the initiative will allow households and businesses to benefit from lower electricity costs, with anticipated savings of about 40 cents per kilowatt hour. He says the region will also see a more consistent and dependable power supply.

Mr Patterson says the wind turbines will cut diesel consumption by up to 68 per cent, resulting in estimated annual savings of approximately $1.2 million. He says carbon emissions per person will fall from 3.34 tonnes to 1.37 tonnes per year.

Before the turbines became operational, electricity generation depended almost entirely on diesel transported by an older vessel that was susceptible to mechanical problems. This resulted in electricity prices about four times higher than the New Zealand average and exposed the community to risks of supply interruptions.

Project Funding and Infrastructure

The project received a $10 million grant from the government’s Climate Emergency Response Fund and a $500,000 grant from the Provincial Growth Fund. The development includes three refurbished wind turbines, a storage battery, and supporting electricity distribution infrastructure.

Project Delivery

The project was completed within 24 months and addressed several challenges, including transporting large cranes, constructing foundations without on-site concrete, and aligning with strict shipping timelines.

Mr Patterson says the Chatham Islands Renewable Energy Project demonstrates what can be achieved through local efforts, technical solutions, and government involvement. He says he looks forward to future opportunities for collaboration between the government and the Chatham Islands.