Meridian Energy will build a 64 megawatt wind farm near Raglan in partnership with Waikato electricity distribution company WEL Networks.

The state-owned enterprise says the high NZ dollar had been one factor in making the economics of the project more viable given the cost of imported turbines. The $200 million development, known as Project Te Uku, will be built on the Wharauroa Plateau, about 30km west of Hamilton, and southeast and inland of Raglan.

Construction will start next month and the first power from the project on private land could be available from late next year.

At capacity it will generate enough power to supply the equivalent of 30,000 average homes.

The wind farm follows the commissioning of Meridian's West Wind project near Makara. Noise from that wind farm has upset some neighbours.

"That's something we're paying very close attention to. There are very strict conditions that we're compliant but we're going further than that and we're working with individual cases to eliminate or reduce noise," a Meridian spokesman said. "This is a large infrastructure development. The issues that we've got are not unexpected."

A Meridian spokesman said the Te Uku wind farm was unlikely to have the same numbers of neighbours nearby. WEL Networks is owned by a community trust, WEL Energy Trust, and connects 80,000 customers to the national grid.

WEL chief executive Julian Elder said the project would help strengthen its networks in Raglan and surrounding areas.