Contact Energy’s fast-track proposal for a 55-turbine wind farm at Slopedown was shot down by an independent consenting panel in a decision released yesterday.
Contact had predicted the project, near Wyndham, would create up to 240 jobs during construction and power 150,000 homes when operational.
In its decision, the panel said it was not satisfied adverse effects on significant indigenous vegetation and the habitats of indigenous animals could be properly mitigated.
Mr Jones said he had long maintained that amenity values were "easily weaponised".
"There’s always a trade-off between landscape and large power development.
"Given the gravity of our electricity supply dramas, it’s an extraordinarily disappointing decision.
"The nation desperately needs to boost the supply of electricity, and each winter we are dicing with economic catastrophe.
"Each winter, we keep our lights on because Methanex and Rio Tinto discontinue certain economic operations so that there’s enough power to keep households warm.
"And at some point, the nation needs to come to grips with what is more important — a multi-coloured skink, or affordable and secure power every winter."
Mr Jones believed the decision would be carefully studied by bureaucratic advisers to establish what specific lessons could be taken and fed into stage three of the rewrite of the Resource Management Act, which was being led by Act New Zealand member Simon Court and National Party member Chris Bishop.
"I’m reluctant to say much more, given the matter could be further litigated, but the importance of boosting the supply of energy is an incredibly important issue for the future of our economy," Mr Jones said.
"And I guess if we can’t get wind farms built, then perhaps it’s time for us to start digging up coal — an outcome which I would whole-heartedly support as the Mining Minister."
Contact Energy head of wind and solar Matthew Cleland was also "extremely disappointed" by the decision.
"The Southland Wind Farm is an important project to support energy security of supply for all New Zealanders — whether it be in their homes, or for the industries that support the economy and the communities in which we operate.
"The growth in demand for electricity, as New Zealand moves away from relying on fossil fuels, means that projects like this will be critical.
"Last year, we made a commitment to be net carbon zero in our generation by 2035, and the Southland Wind Farm has been carefully selected as another important step in achieving that."
Mr Cleland said the panel’s decision could be appealed in the High Court within 15 working days on points of law only.
"As such, we are going to take some time to fully understand the reasons behind the expert consenting panel’s decision to decline consent and assess what option to take next."
The panel acknowledged the project would urgently promote employment and support the certainty of ongoing investment across New Zealand.
However, the environmental effects were such, that the project would not promote the sustainable management of natural and physical resources.
This meant it did not achieve the purpose of the Fast-Track Consenting Act.
Among the main reasons for declining the proposal were the effects it would have on birds, bats, lizards and invertebrates, and the effect it would have on the natural landscape and features, natural character and visual amenity.
It noted there was "significant uncertainty" regarding the importance of the site as a long-tailed bat habitat, and the risk wind turbines posed to the species from turbine strike and habitat displacement.
"Turbines of this large size are novel in New Zealand. Therefore, existing wind farms do not inform this assessment.
"Overseas research indicates bat species with similar characteristics to long-tailed bats are common victims of blade strike."
It also said it had concerns about the effect on the "irreplaceable" fens and bog wetlands on the Jedburgh Plateau, and said Contact had failed to demonstrate these would be adequately mitigated.
The application was made under the Covid-19 Recovery (Fast-track Consenting) Act 2020, and not the more recent Fast-track legislation.
