HDL’s strategies for promoting the Stockton Plateau Hydro Scheme have focused on the investment objectives of prospective investors.
HDL’s latest development strategy proposes value engineering to optimise the hydro potential and minimise development risks. If the government’s investment objectives addressed economic, social and environmental values to the region, the government might be expected to encourage green hydro generation to attract investment to the West Coast. This might also be expected from the government’s partner, Ngati Waewae, to ensure the kaitiakitanga (stewardship) of the Ngākawau River restores the mauri (life force) of the
Ngākawau River, protects the Waimangaroa River and provides long-term employment and financial support for Te Rūnanga o Ngāti Waewae.
The opportunity for dedicated green power supply to a high energy industrial user may be the highest value holistic implementation strategy for the government, iwi, environment and the West Coast community.
Large reservoirs consented for the Stockton Plateau Hydro Scheme, may become optimal as the value of renewable energy increases. The value of hydro storage is expected to increase to cover climatic periods when solar and wind generation is suppressed. The value of configuring the scheme to meet the requirements of a high energy user may also be significant.
HDL has proposed staged implementation through a Special Purpose Vehicle (SPV). HDL’s expectation is that a lead investor will establish the SPV and invite participation by other stakeholders with an interest in the long-term outcomes for Stockton Plateau, the Ngākawau River and the Waimangaroa River. The lead investor will need to enjoy the trust of government, Ngāti Waewae, the Department of Conservation, the electricity sector and the community gained through other projects designed to achieve environmental and commercial requirements.
For some time HDL has proposed that the SPV be formed well before the mining licences expire and the miner quits the site. This has been so that implementation could take place as ancillary work under the rights accorded through the mining licences, and with access to the miner’s resources.
Formation of the SPV prior to the exit of the miner still offers significant opportunities for the SPV, although it is now unlikely that a scheme’s commissioning could occur before the coal mining licences expire and BT Mining quits the site. Benefits of early activation of consents for the Stockton Plateau Hydro Scheme are multi-faceted: it would ensure the SPV played a central role in the transition from mining; relationships with the key stakeholders will ensure investment outcomes are optimised; and planning could commence on downstream industries to mitigate the socio-economic effects of mine closure on the West Coast.