A decision on Contact Energy's preferred option for hydro-electric development on the Clutha River is unlikely to be made until next year.
Contact Energy's hydro project manager, Neil Gillespie, said yesterday the company was still carrying out technical studies on the options and consulting with the community.
"It will probably be next year - maybe early next year - before we select one of the options as our preferred option," he said.
Speaking at the Electricity Commission conference in Alexandra in support of Transpower's plans to upgrade the lower South Island transmission lines, Mr Gillespie said the lines needed to be improved to accommodate new hydro developments.
In its submission on the Transpower proposal, Contact said the proposed transmission upgrade would play a role in influencing the relative merits of the four Clutha hydro development options.
After Contact had selected a preferred option, formal consultation would be carried out for much of 2011 and 2012, with a resource consent application for the project likely to be made the following year.
Construction could begin in 2015-16 and 2020 was the earliest any power would be generated from a new hydro scheme on the Clutha.
"That's an indicative date only," he said.
Contact has sought feedback on four main hydro options on the upper and lower Clutha, proposing dams at Tuapeka Mouth, Queensberry, Luggate and Beaumont, costing between $300 million and $1.5 billion.
The schemes were first mooted more than 20 years ago and all originated from proposals by Contact's predecessor, the Electricity Corporation of New Zealand.
"We know that demand for energy is increasing, so we need to find new sources of renewable energy to meet that demand, ensuring New Zealand meets its international obligations in tackling climate change," Mr Gillespie said.
