(Reuters) – A New Zealand regulatory body has declined to approve Contact Energy’s consent application for its proposed 330 megawatt 55-turbine Southland Wind Farm Project, the utility company said on Tuesday.
An independent Expert Consenting Panel convened under the country’s COVID-19 Recovery (Fast-track Consenting) Act 2020 (FTCA) declined resource consent for the project.
Under the act, the panel is advised and provided administrative support by the country’s Environmental Protection Authority, which is not involved in the panel’s decision-making process.
The decision “represents a significant setback for New Zealand’s decarbonisation, Contact’s mission to improve electricity security of supply and the country’s economic development,” Contact Energy CEO Mike Fuge said.
“During construction, the New Zealand economy would benefit from the creation of up to 240 new jobs, with around NZ$230 million ($133 million) to NZ$280 million in domestic spend,” he said.
The panel, in its report, acknowledged the project’s potential to support the goal to double the overall volume of electricity from renewable sources by 2050.
However, it was “not satisfied adverse effects on significant indigenous vegetation and the significant habitats of indigenous fauna on Jedburgh Plateau can be offset or compensated for in a way that will achieve the purpose of the FTCA,” it said.
The panel’s decision can be appealed to the High Court within 15 working days. Contact will review the decision and assess the next steps available, Fuge said.
($1 = 1.7188 New Zealand dollars)
(Reporting by Aaditya Govind Rao in Bengaluru; Editing by Mrigank Dhaniwala)
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