Meridian Energy says spending almost $8 million to date on its proposed Project Hayes wind farm is the reality of building large and involved projects.
The 176-turbine wind farm proposed for the Lammermoor Range in Central Otago is estimated to cost $2 billion in total.
Meridian spokeswoman Claire Shaw said all developers had to invest in up-front costs for any project and Project Hayes was no exception.
"The total cost of the investment so far reflects the reality of what is required to build projects both as important and significant as Hayes.
It's what is required of us through the consenting process, which has lasted a number of years - with a recent hearing that lasted 12 months," she said.
Meridian first lodged resource consent applications for Project Hayes with the Central Otago District Council in July 2006 and in October 2007 with the Otago Regional Council.
Since then, it has spent $7.9 million on the development proposal, which is pending an Environment Court appeal hearing decision.
Ms Shaw said the cost to date covered a host of aspects, including legal costs associated with hearings, as well as investment in programmes to prove mitigation was possible.
For example, Meridian had invested in a tussock re-vegetation programme to demonstrate land in and around the project could be successfully revegetated once turbines were in place, she said.
"We are obliged to carry out things which give a level of accurate detail that will demonstrate to the decision makers we can meet the expectations of the consents we are applying for.
"This is simply something we have to do as part of the process of getting such an important project to this stage - and is, absolutely, what all good developers do," she said.
Ms Shaw said Project Hayes was a big project, in general terms, and was Meridian's largest wind-generated electricity project.
She said each project was different and demanded different costs accordingly, and therefore were hard to compare.
Meridian viewed Project Hayes as a long-term investment, she said.
Although Ms Shaw could not comment on what outcome might be reached through the Environment Court as a decision was pending, she said should Meridian get consent, it would have to review whether or when the wind farm could be built.
"We would go through another process of evaluation then," she said.
An Environment Court spokesman told the Otago Daily Times a decision for Project Hayes was not likely to be issued before the end of September.
In contrast, Meridian estimated it spent about $93 million, which included $50 million for land purchases, on its Project Aqua power scheme in the Waitaki Valley.
It cancelled the scheme in March 2004.
Land purchases totalled about 3100ha, which have risen in value and could now be worth up to $130 million.
Research and information gathered during the Project Aqua investigation were also applied to its north bank tunnel concept scheme, which is awaiting a decision by the Environment Court
Project Hayes costs - To date.
• Pre-feasibility
Travel, accommodation and disbursements: $52,535.19
Contractors and consultants: $644,743.24
Legal: $29,791.86
Land and mitigation: $38,327.78
Total: $765,398.07
• Securing consent
Travel, accommodation and disbursements: $200,409.47
Legal: $221,754.03
Effects studies and costs: $2,351,209.51
Total: $2,773,373.01
• Appeal
Travel, accommodation and disbursements: $85,979.72
Legal: $651,648.12
Effects studies and costs: $1,138,309.80
Total $1,875,937.64
• Land purchases
Land purchases (consent/appeal) $348,802.06
Travel, accommodation and disbursements: $492.42
Total $349,294.48.
• Pre-construction
Travel, accommodation and disbursements: $583,319.46
Contractors and consultants: $1,152,840.05
Legal: $5153.97
Land and mitigation: $418,970.94
Total: $2,160,284.42
• Project total to date: $7,924,287.62
