Power station gets go-ahead under 'call-in'

A proposed geothermal power station near Taupo has been given the go-ahead, the first granted under the Government's "call-in" process.

Contact Energy's Te Mihi station will go ahead following a decision by a board of inquiry headed by Environment Court judge Gordon Whiting.

The 220MW Te Mihi development is due to eventually replace the pioneering 50-year-old Wairakei Power Station.

It will divert steam from that station and generate 40 per cent more electricity - without needing any more geothermal fluid - while reducing the discharge of heat and trace elements to the Waikato River.

Contact Energy chief executive David Baldwin said the station would power more than 200,000 homes per year when completed.

The project was called in by the Government under a process where projects of national significance can be fast-tracked to speed up the Resource Management Act consent process.

Applications for consents for the project were first lodged by Contact Energy on July 31 last year. Mr Mallard announced his intention of calling the project in on December 20, and public notice of this decision was made on February 9.

The process combines the required RMA considerations by the local council and a potential Environment Court appeal process into a single consideration by a board of inquiry.

The decision on Te Mihi was made following a public submission process and a three-day hearing.

Environment Minister Trevor Mallard said the decision showed the call-in process could significantly reduce the time taken for major projects requiring consents under the RMA.

"This is the first time since amendments to the RMA in 2005 that a board of inquiry has made a final decision on a called-in consent application, so it's a significant milestone for the RMA," he said.

Mr Mallard also took the opportunity to take a pre-election dig at National, which he says would cut the public out of the Resource Management Act process.

"As this decision demonstrates, changes to the RMA are not needed and projects can be approved within acceptable timeframes - with public input and consultation secured throughout the process.

"Unlike National, Labour believes public input must be protected regardless of the project that is proposed."

The board's decision can only be appealed to the High Court on points of law.

Three other projects have been called in by the Government: Transpower's North Island grid upgrade project, Unison's proposed Te Waka wind farm in Hawke's Bay, and the Hauauru ma Raki wind farm project of Contact Wind and Contact Energy near Raglan.

A hearing is under way for the North Island grid upgrade project, Environment Court consideration is due in December for Te Waka wind farm, and Hauauru ma Raki was announced in August this year.

- NZPA