The Tiwai Point aluminium smelter's reprieve has triggered the expansion of a wind farm near Gore which will become the country's second most powerful wind generator.
Mercury Energy today confirmed it will start stage 2 of the $486m Kaiwera Downs wind farm project after signing a long-term agreement with New Zealand Aluminium Smelters.
Smelter owner Rio Tinto announced last week it had signed 20-year electricity arrangements that secure the smelter's future.
Kaiwera's first stage, consisting of 10 turbines, was commissioned last November.
"It will bring the total capacity of the Kaiwera Downs wind farm to 198 MW, the second largest in New Zealand," Mercury said.
Construction was expected to start this month and the site would reach full generation by the end of 2026.
"We know there are many in the Gore community who are deeply interested in this project, and we’re committed to continuing to work with the community as we have with the first stage of Kaiwera Downs,” Mercury Executive GM Portfolio Phil Gibson said.