Conservation Minister Chris Carter says a decision on a Bay of Plenty hydro project is coming soon and has hinted it will receive his approval.
The Conservation Department has been considering the Upper Kaituna hydro project for more than a year.
Bay of Plenty Electricity's proposal would supply13.5MW of electricity, enough to power about 10,000 homes.
It requires approval under the Resource Management Act but also needs a concession under the Conservation Act because between 0.5 and 1ha of a 54ha reserve would end up under water.
Mr Carter told Parliament that a decision was now close.
"A decision on the Kaituna project is very imminent," Mr Carter said.
"I can say that some good news is very close on that project."
National's environment spokesman Nick Smith said the Conservation Department had a record of blocking renewable energy projects.
Mr Carter said that was not correct, and any encroachment on DOC land was treated on its merits.
"One of the things I think all New Zealanders are proud of is our beautiful natural environment. Protecting that environment is a very important task of the department," Mr Carter said.
The two men disagreed about how long it had taken DOC to consider the proposal and who was responsible for the delay.
