Pioneer Generation has confirmed it is preparing a resource application for two hydroelectric dams on the Nevis River.
The company, which is wholly owned by the Central Lakes Trust, has been investigating the feasibility of a hydro scheme on the Nevis River for about 17 years.
The Nevis is a high-altitude river tributary of the Kawarau River in the Clutha River catchment.
It is protected by the 1997 Water Conservation Order (Kawarau River).
However, that Conservation Order leaves a window of opportunity for hydro-electric development in the Nevis catchment.
Pioneer Generation chief executive Peter Dowling said no designs had been finalised, although he agreed the broad parameters had been set.
The scheme could potentially produce up to 45MW and cost upwards of $100 million to build.
A water conservation order allowed for limited flooding and that was still being studied, Mr Dowling said.
The lake from the top dam could flood upstream of the Nevis Cutting to the School House Flat area and would be the size of Lake Hayes.
It would flood a large proportion of the gold fields area and the existing Nevis Homestead.
The lower dam just above the bottom gorge would be a buffer dam and would channel water down to the power station.
Mr Dowling said Pioneer Generation was still waiting for tenure review on the two farms it had bought in the early 1990s.
Tenure review had been stalled by changes in government policy but was now on the move again, and the company had signed the draft preliminary proposal.
‘‘It now has to go through the bureaucratic process and then it will be advertised for public submission, and that probably won't be until spring,'' Mr Dowling said.
‘‘That will sort out the land tenure process, and in the meantime we have begun putting together the initial stages of a resource consent application.
‘‘It's a long and slow process and there are many studies to be carried out, including fisheries and environmental studies.
‘‘We're not at the stage of bulldozers rushing up the hill yet,'' he said.
There were also transmission issues to be dealt with and a whole myriad of other things to take into consideration, Mr Dowling said.
