April 2008 W NNDDFAARMRM

ByUPDATEU Dr Julian Elder PDATE he decision on WEL Networks’ proposed at is expected to be Tannounced by the District Council in the near future. Like you, we keenly await the outcome. I’m sending you this UPDATE 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. The business case for the wind farm is strong and financially sound. Otherwise, we would not be risking an investment of $200 million, particularly when we are owned by the community. The project will only go ahead if it is profitable. But we do acknowledge that there are residents with mixed feelings about the wind farm, and those who oppose it. The proposed wind farm is among the smaller of the wind farms either in operation or planned elsewhere in . The generation of power to meet the growing demands of consumers and industry always presents a dilemma. New Zealanders are demanding renewable energy resources, yet at the same time they are demanding more supply. In the Waikato region, 55 percent more power will be needed in the next 10 years to meet the growth of both residential and business consumers. NO TO NUCLEAR POWER fired power stations are being rejected and no-one supports nuclear power. Other ways to deliver power, such as bio mass, tidal and solar, are not currently realistic in commercial terms. Wind, as an energy resource, continues globally as the most widely accepted form of renewable and sustainable generation. WEL has spent five years evaluating a number of sites in the Waikato region and based on that research the Te Uku site is the best location available to us. The wind data collected over the past three years at Te Uku confirms the site’s viability. There is a very real benefit to Raglan if the wind farm proceeds. As a direct result, the power supply will become more secure. We have planned a lines upgrade for Raglan for completion in 2017. But the new wind farm will require this to be completed in 2010 at the earliest along with a new substation at Raglan if the project proceeds. With, or without the wind farm, this work will go ahead. INVESTING IN RAGLAN Meanwhile, over the past three years the company has invested $4 million in improving the power supply to the Raglan district quite separately from planning for the wind farm. Now that we are all in a waiting mode over the wind farm decision, we felt it important to send you this Wind farm UPDATE. It has been prepared to answer questions you might still have and, hopefully, to correct some misinformation that is circulating in the community. As you can imagine, the evidence from both sides represents hundreds of thousands of words, much of it very technical. All of the documents can be viewed at the offices of the Council. Alternatively, the WEL evidence is available on the company website, www.wel.co.nz. If you do have any questions please contact the Wind Farm Project Team at the address shown on the back of the UPDATE.

*Dr Julian Elder is Chief Executive of WEL Networks Limited and has a background in infrastructure engineering and construction. He has a Doctorate in power generation. majority indicating that they were happy with the Why have the turbines level and quality of information provided to them increased in height from 80 by WEL. Almost everyone thought the information metres to 137 metres. WEL was excellent or good in terms of being clear and Networks told us in a brochure easy to understand. that the turbines would only be 80 After the delivery of the information pack, a series metres high. of advertised public meetings were held in Te Uku, Te Mata, Raglan, Kawhia and Te Akau regions. At At the time of announcing the these meetings, all WEL’s representatives were feasibility study we were in the early available to the public, including the CEO, the stages of considering a range of turbines, project team and expert consultants. sizes and models, from a number of international manufacturers. Two open days were also held at Te Uku. During the fi rst stage of informing the public, WEL fl ew 43 We felt it was important to give the residents residents to the in Palmerston a sense of visual perspective of the North so they could see for themselves an proposed turbines. So WEL announced operating wind farm. the feasibility study for the proposed site In terms of outcomes from this public process, quoting the turbines under consideration WEL then made a number of changes to the with a hub height of 80 metres and a total project, including repositioning of a turbine. height of 125 metres to the top of the blade. We believe that WEL has made every possible However, after presenting this information to effort to ensure accurate representation of the the community, we identifi ed that the visual impact, including the Te Apiti wind farm V90 turbine was the most suitable generic Many residents say they visit, which enabled people to make up their own model for the site. It had a hub height of 90 consider that WEL tried to deceive minds on noise and visual impact. metres and total height of 137 metres at the peak them by failing to include the In the event that the Commissioners grant of the blade. Telecom receiver tower in the the wind farm application, and subject During the second round of public open days, photographs published in the to any Environment Court appeal, it is WEL’s intention to set up a community the new turbine height size was discussed with original brochures. Why did WEL those who attended these meetings and this liaison group. This group, with WEL’s support, remove the receiver? would provide an opportunity for direct contact is where the confusion between the hub with the company and the project team. (see height from the initial 80 to the now 90 This is incorrect. The Telecom receiver has community liaison group question on page 4). metres arose. always been in the photographs but it is diffi cult to see against the skyline, particularly because of Much has been made of wind Originally there were only 24 the distance between where the photo was taken data at the site. Why did WEL ignore turbines. Now there are 28. Why? and the actual tower and turbine location some 3 kms away. data gathered independently over a It is correct that in the original information WEL 10 year period at another site? WEL has always been concerned to ensure planned for 24 turbines. that the community has been presented with The wind data related to a different location As landowner agreements became fi nalised the visual material that accurately refl ects the size some 10kms away from the Te Uku site and turbine layout was revised and subsequently of the turbines. at a much lower level relating to the ground increased to 28. conditions. WEL has been monitoring wind As well as the brochure, photographs of the fl ows at the plateau site for three years using The decision to add four more turbines was turbine sizes were clearly indicated in a specially internationally recognised and sophisticated discussed with those who attended the two produced CD. technology for wind data collection. community open days at Te Uku and has Why hasn’t WEL listened to the been consistent with all other subsequent Why did WEL make it diffi cult for information including the application. concerns of the community? submitters by holding the resource The application has always been available WEL has been proactive in communicating with hearings in Ngaruawahia instead of for public inspection at the offi ces of the the community located close to the wind farm at the Te Uku hall or at a venue in Waikato District Council (WDC) since it was and indeed the much wider community extending Raglan? It would have been more lodged on 19 March, 2007. from , Aotea, Kawhia, Raglan convenient and less travel cost township and over the harbour to Te Akau. More WEL is not seeking to increase the number than 7000 information packs announcing the for submitters. of turbines from 28 should the application feasibility study, were delivered to the area, as The hearing process was managed by the be successful. well as business and community leaders Waikato District Council. We understand that throughout the region served by WEL. because of the number of staff, fi les and the need We note in the application that for computer access that the WDC preferred the Professional research was undertaken by a WEL indicated a turbine numbered hearing at their facilities in Ngaruawahia. member of the Market Research Society of New as 29. Yet this is in confl ict with Zealand, Versus Research, following delivery WEL’s application for 28 turbines. of this information. It showed more than 80% We are concerned at the level Why? support for the project from those living in the of noise expected to be generated greater Raglan area, support in Te Uku was 64%, from the wind farm. There is a “number 29” turbine. only 17% opposed. The research had a margin Wind farms do generate noise, but at levels that As a result of community feedback, and after of error of 3.7%. are regarded as environmentally acceptable. initial feasibility studies were completed, WEL Three out of four people, which is a very high Te Uku residents who were able to participate removed turbine 22 and added a turbine (29) to response in research terms, acknowledged in the visit to the Te Apiti wind farm had a fi rst a new location. receiving the information. hand exposure to the level of noise as well as visual impacts. Feedback from the group has The number of turbines, however, remains Of those who received the information four out suggested that their initial concerns about noise at 28. of fi ve people acknowledged reading it, with the were unfounded. One of the key reasons for choosing the Wharauroa to achieve a favourable outcome for a resource Plateau for the Te Uku wind farm has been its consent to operate a wind farm at Te Uku. Having isolation from clusters of residential housing, said this, no NZ owned company can predict with schools and churches. The nearest other house any accuracy future changes by government, is located about 3 km away. In addition the changes in the demand for power or even for Te Uku school and hall is also about 3 kms away. WEL Networks itself.

Obviously one residential home belonging to WEL is proceeding with the wind farm application the owner of the Plateau site is closer to the because the company believes it is good for the wind farm. community, delivers a renewable energy resource and the business case stacks up. As part of the consent application and our feasibility study, WEL had engaged a highly It is projected that the cost of building the wind qualifi ed acoustic expert to research and analyse farm, including all of the associated costs, will be current information on operating wind farms in NZ. in the vicinity of $200 million. WEL Networks will The expert’s evidence demonstrates that fears be looking closely at whether we will be able to over invasive noise are unfounded and will be fund the project entirely or whether a joint venture within the applicable New Zealand standards. partner will be required.

Wind farms are ugly and ruin the If the wind farm proceeds natural beauty of the landscape. construction will cause major traffi c WEL accepts that not all people fi nd wind farms problems. What will WEL do to visually appealing. In accepting that, the balance mitigate this? is that not all people fi nd them ugly. WEL accepts that local residents feel traffi c The issue becomes one of a renewable energy volumes on State Highway 23 are high at certain resource and energy sustainability. times. One of the issues will be the trucking of the 28 turbines from Auckland to Te Uku. While In the research undertaken by Versus Research, this will occur outside peak road use times there in 2006 on behalf of WEL, the main reason for the will be some effect on traffi c, similar to following a more than 80% support for the Te Uku wind farm sampling is a priority. It’s anticipated that if resource logging truck across the deviation at the moment. from the greater Raglan region was the WEL is committed to a traffi c management plan environmental positive of wind farming compared consent is granted there will be conditions set that WEL will have to adhere to for the ongoing that will ensure commuters are affected as little as to the available alternatives. possible, and that road safety due to construction protection of the waterways. traffi c is maintained to the highest standard at The Te Uku area is a habitat all times. Why wind, aren’t there other for the Longtail bat and the NZ options and what is WEL doing Should the resource consent be granted the traffi c Falcon. There are concerns that about this? management plan will be something for WEL to these species could fl y into the discuss with the community liaison group when it rotation blades. It has been suggested that WEL is rushing to is established (see question on page 4). During the join the race to establish a wind farm particularly construction phase the need for heavy trucks to Evidence gathered from other wind farms show when it is a lines network company and be carrying metal and other construction material very little impact on wildlife. WEL accepts that generation is not its business. to the site will be considerably reduced because each wind farm site is unique and will contain the onsite quarry will provide all the aggregate for wildlife specifi c to that location. WEL has been proactive in investigating a variety the project. of renewable energy resources for the region. As a community owned company, WEL is This has included methane gas from dairy farms, Who owns WEL Networks and concerned that danger to local wildlife is landfi ll gas, solar energy, tidal energy as well minimised. WEL has commissioned ecologists where do the profi ts go? wind farming. We have NOT considered nuclear to study the site and their research indicates energy as it is very clear New Zealanders would WEL Networks, valued at in excess of there will be little impact on the birds and bats in not have a bar of it and it is not legal here. The $460 million, is owned by the community. The the area. demand for power has been rising in the region ownership is vested in the WEL Energy Trust on WEL is also working with the Department of and growth has forced urban and rural planners behalf of the community. When the trust deed Conservation to establish a research programme to look well into the future. The Waikato region to monitor bat activity should the wind farm will need a 55 percent energy supply growth to meet expires in May, 2073, the company assets application succeed. To WEL’s knowledge the demands of consumers and industry within are returned to what is known as the capital this will be the fi rst time that such a study has the next 10 years. benefi ciaries. These benefi ciaries are the been undertaken. Hamilton City Council (63%), Waikato District In terms of alternative power generation WEL It is important to note that the NZ Royal Forest has been involved with the Hamilton City Council Council (35%) and the Waipa District Council and Bird Protection Society supports wind farms in a joint venture project to “farm” methane gas (2%). Profi ts from the company in the past have and sustainable renewable energy generation to produced from the Horotiu land fi ll. been distributed by way of grants to community help mitigate the effects of climate change. This project generates suffi cient electricity to organisations and for major community power 656 homes. projects. Raglan organisations have received The wind farm will need an over $730,000 during the time of the grants erosion and sediment monitoring While WEL is a lines network company, programme to ensure protection of government changes to legislation enable programme. In more recent years the Trust the surrounding waterways. What network providers to diversify into renewable has decided that the profi ts should mostly be will WEL do to safeguard these energy generation. returned to consumers in the WEL Networks area of operation. In the past six years around waterways and fi sh species? Will WEL sell off the wind $104 million has been returned to consumers WEL has already started a water sampling farm? programme. This involves taking samples to by way of discounts on their power accounts. enable benchmarking of the current water quality WEL is in business for the long haul. In various Over the coming weeks consumers will share against any change that may occur should the forms WEL Networks has been serving the in discounts totaling $22.9 million. wind farm proceed. During construction on-going community for almost 100 years. Our focus is Above: The Te Apiti wind farm near Palmerston North which has 55 turbines compared to the 28 planned at Te Uku. Why bother with the wind farm The extended consent lapsing period of 10 In addition, WEL emailed evidence to a number of years sort by WEL, allows the company to the submitters and has provided CD’s to anyone and instead spend the money on monitor other economic factors that could who asked. upgrading the line to Raglan? impact the project. For example the availability Reliability of electricity supply to Raglan is a of turbines, impact of carbon credit values, the What about the community priority. Over the last three years we have invested exchange rate and oil prices. liaison group that has been $4 million in improving the supply to the wider It is understood from earlier mentioned? Raglan district. This is in fact a separate issue to information that the wind farm can The issue of a community liaison group had the wind farm. WEL is planning to upgrade the line been considered by WEL during the feasibility to Raglan in 2017 which will involve an investment only operate for 20 years. What study and we had always recognised that this of a further $3 million. If WEL is successful with happens then? would happen once the decision had been made the wind farm application we would bring forward After 20 years, the wind farm would be on the project. the line upgrade to 2010 at the earliest. re-evaluated. The initial design life of the turbines is 20 years and if the wind farm was to continue Once the hearing outcome is known, we will If the line is upgraded does this operating the turbines would need to be rebuilt be communicating with the community on mean using large pylons? or replaced. the setting up of a CLG to provide a forum for the community. The answer is no. Slightly longer standard Where will the power concrete power poles that are familiar to generated by the wind farm It is said there will be no everyone will be used and it will be subject to environmental benefi ts created a separate public notifi cation process. be used? from the wind farm in terms of The wind farm will generate suffi cient energy to climate change. If the wind farm proceeds will it provide electricity to 30,000 homes. reduce land values in the district? This is incorrect. The project will initially deliver a Power will be fed into the substation at saving of 168,000 tonnes of carbon emissions The issue of land values was fi rst raised when Te Uku and to our connection at Te Kowhai. annually, the equivalent of removing 39,000 cars WEL announced its feasibility study. In turn this will then go directly into the WEL a year off the region’s roads. networks supply. Research indicates a slight impact during construction and values recovering when a wind The power generated will be used by WEL fi rst We have heard that WEL farm becomes operational. to supply our western region. If more power Networks will be fi ling further is generated than we are able to use, then this applications relating to the More recently, a New Zealand-wide decline in excess will be fed into the national grid. property prices has been reported by the Real wind farm. What Estate Institute of New Zealand and property One of the major benefi ts of the wind farm is that it are they? market commentators. This makes it very allows WEL to reduce the amount of power drawn If the wind farm is built WEL diffi cult indeed to defi ne where current property down from Transpower. Networks will also require a values are. new substation and a new It has not been easy to view If the resource consent is power line from the wind farm the evidence given by WEL at the into Te Kowhai. These lines granted, when will the wind farm hearings. are not pylons but slightly be built? longer standard concrete The WEL evidence went directly to the Waikato power poles similar to the WEL is realistic enough to understand that if the District Council which has managed the process. existing ones. WEL is resource consent is granted that there is the This evidence was available for public viewing at talking with landowners likelihood of an appeal to the Environment Court the District Council offi ces in Ngaruawahia. which would mean no decision to proceed for about this line. These approximately 12 months from the time an appeal We subsequently asked the council to make applications will is lodged. It will take two to three years for the the evidence available at its Raglan offi ces require public construction period once a decision is made to and we have also placed the evidence on the notifi cation. go ahead. WEL website.

WEL Networks • P O Box 925, Hamilton • Phone: 07 858 1436 • Email [email protected] www.wel.co.nz