September 17, 2008 W NNDD PAARKR K UUPDATEPDATE TO PARTNER WEL NETWORKS IN WIND PARK Hamilton-based WEL Networks and Meridian Energy, ’s largest generator of renewable electricity, have reached agreement to jointly build and operate the 28-turbine wind park on the Wharauroa Plateau, near Te Uku, seven kilometres east of Raglan. This was announced today by WEL Networks’ chief executive, Dr Julian Elder, and Meridian chief executive, Tim Lusk. = Dr Julian Elder

WEL began planning the $200 million Dr Elder said the alliance also means the upgrading project three years ago. of lines to 110kv serving the Raglan area could be The company gained resource consent accelerated by up to eight years, bringing improvements from the District Council and to the reliability of supply to the area. Waikato Regional Council in May Meridian, as a major generator and retailer of renewable following a four-week hearing before electricity, and owned by New Zealanders, will bring four independent Commissioners. signifi cant value to the project. The granting of the consents were subsequently appealed Mr Lusk said Meridian was delighted to have been to the Environment Court by three submitters. chosen by WEL for the project. WEL is now working through a mediation process with “Meridian and WEL have a shared vision for creating the appellants, and an Environment Court hearing is a sustainable solution to the Waikato region’s power expected to take place early next year if the appeals needs,” he said. cannot be settled. “We are proud to partner with WEL and look forward Upgrading of lines to building a project the region can be proud of.” Meridian currently operates more than $6 billion worth Dr Elder said if the Environment Court fi nally signs off of generation assets including nine hydro stations, two the project, Meridian and WEL will form an alliance. wind farms, with two more This will enable Meridian to build and operate the under construction, and turbines, estimated to cost $160 million. has consenting processes WEL will own and manage the electrical lines and sub- underway for three other station within the wind park and the high voltage line wind farms. connecting the wind park to the national grid which in According to Dr Elder, total will cost around $40 million. discussions had been Meridian will own the electricity generated by the held with several selected turbines while WEL will generate new revenues from potential partners but Meridian had proved to be its electrical works. Above: Meridian’s Te Apiti “the best fi t with WEL. Wind Park

Wind Park Update is published to provide important background information as part of WEL’s commitment to on-going consultation with the greater Raglan community. The Update forms no part of the resource consent process. “Meridian complements WEL’s vast experience in electrical network design, build and construction for projects like this,” he said. “Meridian Energy is an ideal partner for us and the region. “Meridian’s state ownership was consistent with WEL’s community-ownership, with both companies committed to renewable energy resources and the communities they operate in. “It was critical we selected the best partner with the right culture, a commitment to sustainable and Above: An artist’s impression of Ross Island Wind Park renewable generation, and experience as a major wind park developer and operator,” Dr Elder said. More about Meridian Leadership role Meridian currently operates more than $6 billion worth of generation assets. Meridian’s experience in negotiating for turbines on the Apart from operating 9 hydro stations, Meridian has two wind international market means 28 turbines for Te Uku can farms in operation: easily be added into Meridian’s supply contracts. • Whitehill with 29 turbines and 58MW capacity, enough Meridian’s commitment to the communities it operates electricity to power around 20,000 average homes, is located in will fi t with WEL’s continuing focus on community 6 kilometres south-east of Mossburn in the South Island. outcomes. • Te Apiti with 55 turbines and 90.8MW capacity, enough to power around 32,000 average homes, located north of the WEL will retain a leadership role for these activities. Manawatu Gorge on 1150 ha of farmland. Dr Elder said the alliance agreement gives WEL a Meridian also owns New Zealand’s first-ever wind turbine, now leadership role to ensure the regional and community an iconic site at Brooklyn, Wellington, and built by the company’s benefi ts are delivered by the project and remain predecessor, ECNZ. responsible for dealing with community matters as far Meridian has two wind farms under construction, West Wind and as the wind park is concerned. Ross Island. “This remains for the life of the wind park and its West Wind is on Wellington’s south coast with 62 turbines (573MW) and Ross Island Wind Energy is in the Antarctic. ultimate disestablishment.” Ross Island, when operating, will substitute the large amount of Dr Elder said one of the conditions of the resource fossil fuel used with renewable energy to power Antarctic New consent requested by WEL requires the formation of a Zealand and the United States Antarctic bases on the ice. community liaison group in the greater Raglan area. Three other wind parks are currently in the consenting process: • Mill Creek, also on Wellington’s south coast and next to West Joint responsibility Wind, with 31 turbines with capacity up to 71MW (around This remained a priority and Meridian has experience 35,000 homes); of working in community liaison groups through its • Central Wind, north east of Taihape with 52 turbines able to other projects. generate electricity for 50,000 homes; and, The liaison group would have been established by now • Project Hayes, on the Lammermoor Range, northwest of Dunedin with 176 turbines generating up to 630MW. but was delayed by the appeals to the Environment Court. Meridian’s generation capacity of almost 2,600MW (with another 1,700MW in development) is fully integrated into its retail supply Both WEL and Meridian would take joint responsibility business. in keeping the community fully informed. Meridian supplies more than 180,000 industrial, commercial and Meanwhile, Dr Elder said WEL would continue to residential customers with certified carbon neutral electricity. engage with the three appellants opposing the project Meridian is New Zealand’s first and only certified supplier of and continue to lead the Environment Court process. carbon neutral electricity. Meridian employs over 500 people. WEL’s owner, the WEL Energy Trust, has been briefed Meridian’s head office in Wellington is a landmark building in on the Meridian alliance and reaction from trustees had terms of sustainable technology and design. It uses 60 percent been extremely supportive and positive. less energy and 70 percent less water than comparable office buildings.

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