A $13 million hydro-electric scheme is under construction in Hawke's Bay that will harness power from two tributaries of the Esk River.
The 3.8 MW scheme, to be known as Esk Hydro, is being built by Tauranga-based Trustpower and will provide enough electricity to power about 1800 homes.
The Toronuiand Rimu tributaries will be harnessed and the electricity fed into Unison's network at Tutira via a 4km 33kV line.
Unison Group chief executive Ken Sutherland said the project would provide Hawke's Bay with an alternative power supply - currently all of Hawke's Bay's power was supplied by Transpower's National Grid.
"This is a substantial project for the region, and will further support our strategy of ensuring security and quality of power supply to our customers," he said.
Trustpower has said all resource consents were in place and the scheme's design was environmentally-sensitive because no waterway would be dammed and the powerhouses and intakes were compact.
Unison was due to begin building the connecting line to Tutira later this month which would connect to Unison's existing 33 kV line between Tutira and Tamatea.
The project was initiated by the owners of the land on which the two streams flow more than 10 years ago, with Trustpower acquiring the rights to the scheme five years ago.
It was expected to have an annual output of 15GWh and would be commissioned in June next year.
TrustPower had 36 other power schemes in New Zealand and was listed on the New Zealand stock exchange. An electricity retailer as well as generator, it was majority owned by Infratil, which was also a publicly-listed New Zealand company.patrick.osullivan@hbtoday.co.nz