The man-made lake 20km east of Roxburgh has been endorsed as a potential location for a pumped-storage hydropower scheme which could relieve New Zealand’s dry-year electricity issue, and is one option investigated by the Ministry of Business, Innovation and Employment (MBIE) through its $100 million NZ Battery Project.
Early investigations were favourable, indicating Lake Onslow met six "critical requirements" necessary for a large-scale pumped hydro scheme, however this came with a trade-off against environmental, social and cultural values.
It was expected the Government would shed light on what the future held for Teviot Valley residents this month; however, locals will have to remain in the dark a little longer with findings from the project’s phase 1 feasibility studies this month to be considered by Cabinet in the new year.
MBIE energy projects and programmes manager Dr David Darby said the delay was not expected to materially impact the project’s work programme.
"The NZ Battery Project is a significant national project that will influence how New Zealand’s electricity market will operate for generations to come," Dr Darby said.
"We appreciate that this delay prolongs the uncertainty for some, particularly landowners affected by the Lake Onslow investigations and mana whenua. We expect there will be opportunities to accelerate our work in the first part of phase 2 to minimise any impacts caused by this delay."
The NZ Battery Project is divided into 3 phases and is expected to take several years.
Phase 1 has focused on investigating the feasibility of a pumped hydro scheme at Lake Onslow and at other locations around the country, as well as other solutions.
Phase 2 will focus on further investigations on the chosen option or options, developing a detailed business case and final investment decision.
Following this, Cabinet will decide whether to continue into the final phase of constructing or implementing the preferred solution or solutions.
