29 May 2009 - NZX Announcement - Progress Update
29 May 2009
NZ Windfarms reports that good progress is being made on its 100% owned Te Rere Hau development in the Tararua Ranges. As at 28 May 2009 a total of 43 turbines were operational and producing electricity into the National Grid. The wind farm has achieved an output of greater than 20MW. At the current rate of progress 65 turbines are expected to be operational by the end of October 2009.
The Te Rere Hau wind farm is currently consented for 97 turbines. The last 32 turbines comprise "Batch 4" of the turbine order placed with Windflow Technology on 30 September 2008 and are expected to be delivered progressively from the end of September this year.
On 29 May 2009 NZ Windfarms lodged a Resource Consent application with Tararua District Council to install 56 turbines in an area adjoining the current consented Te Rere Hau wind farm. This Extension area has a better wind resource than the lower slopes of the existing farm and hence NZ Windfarms would like to preferentially locate most or all of the Batch 4 turbines in this area.
The Prospectus of 9 May 2007 projected that the Company would have 50MW capacity (equivalent of 100 Windflow 500 turbines) producing an expected annual energy production of 159 Gigawatt hours by 2010. This was to be made up of a 50% share of the Te Rere Hau project and 26MW of other projects. Other projects have not proceeded as rapidly as expected but this has been offset by the purchase of the other 50% of the Te Rere Hau project. We have recently had an independent energy yield forecast completed for the whole Te Rere Hau site, incorporating wind and turbine performance data gathered from the site over the past two years. This has shown by optimising the development and setting the 32 Batch 4 turbines in the extension area an expected annual energy yield of 153 Gigawatt hours per annum is forecast from an installed capacity of 48.5MW (97 turbines). The study has also shown that the expected annual output from siting all the Batch 4 turbines on the lower slopes of the existing consented Te Rere Hau site would be 122 Gigawatt hours per annum. This is lower than previously forecast due to higher than expected wake effects (interference between adjacent turbines); use of a more conservative assumption on availability (95% instead of 98%), and other factors.
The location and timing of the construction programme for Stage 4 will depend on the progress and outcome of the consent application and the company will choose the best option to give the optimum outcome.
Successful consenting of the Extension area will also present NZ Windfarms with expansion opportunity beyond the current project scope and allow existing infrastructure to be leveraged. NZ Windfarms forecast output from 56 turbines (inclusive of the planned relocation of Batch 4 turbines) in the Extension area is 95 Gigawatt hours per annum.
NZ Windfarms also advises that it has sold its interest in the Mt Stuart Project, near Milton, Otago to Pioneer Generation Limited. As signaled in NZWL's interim report, the Mt Stuart project was not significant to NZWL and the sale allows all efforts to focus on successful completion of the Te Rere Hau wind farm. The sale to Pioneer will result in a small gain for NZWL.
For Further information contact:
Chief Executive 03 943 5410