Renewed attempts are underway to finally find alternative electricity sources for our third largest island.
For decades, many Stewart Island / Rakiura locals have relied heavily on large council-run diesel generators for power.
While the rural settlement of Oban has come a long way from individual home generators of the past, costs are sky high.
The isolated paradise, just a flight or ferry away from the bottom of the South Island, has thousands of tourists visit every year but around 120 ratepayers.
Time and time again, conversations about the power prices spark.
“It has gone up from 41 [cents per kilowatt hour] about 10 years ago, to the current state now,” the island’s community board chairman Aaron Conner told 1News.
The current state – 85c/kWh.
“It’s just another added burden on a daily cost of living, really, which adds up to money for nothing. It’s just unproductive money that’s going nowhere,” Conner said.
Recent figures from the Ministry of Business, Innovation and Employment (MBIE) show North and South Islanders pay on average 34c/kWh.
While some think the prices are exorbitant, others believe it’s part of the Stewart Island experience.
Resident Lania Davis said even using an electric oven “takes a lot of power”.
“Winter time – you can’t dry clothes outside over here, so you’ve got to use a dryer and that’s really expensive.”
Push for renewables
Rakiura has trialled several alternative electricity sources over the years, including solar and wind power.
The local school now runs its classroom through solar panels on the roof.
But as the price of diesel climbs and there is a push for renewable electricity, the conversation has been back on the Southland District Council’s table.
The last Labour government proposed wind turbines through the Provincial Growth Fund and allocated an initial $3.16 million.
But that plan never happened.
Conner said there had been “no agreement” about where they could be located.
“Some of the sites weren’t appropriate,” he said, “and it sort of just died a natural death after that.”
A new plan
Since the 1970s, there have been multiple reports on alternatives – some say close to 15 – on ways to improve its electricity sources and make the island less vulnerable to problems.
Some ideas included hydro, wind, solar, or a combination of all.
Many residents are now exasperated by the thought of any more reports.
“I think a lot of money has been spent on consultant reports and things with not a heck of a lot to show for it,” local man James told 1News.
Southland District Mayor Rob Scott said, “I actually banned the word ‘report’ during the meetings that we had.”
Now Scott has set his sights on a new renewable plan – this time, an estimated $15m solar farm on council-owned land.
“We’ve got some advisors to come in. We had to look at what was going to be the most viable option for the quickest short-term gain, but wasn’t going to have any impact on the long term,” he said.
Advisors believe the solar farm can reduce prices by 35c/kWh, with the council target being, on average, 50c/kWh.
It would also dramatically reduce diesel consumption by 75%.
Scott wants the project up and running by the end of 2026 – with the added hope that the Government will help foot the bill through the Regional Infrastructure Fund.
“When you look at Stewart Island’s place in New Zealand and what it does for New Zealand, it’s a jewel in the crown,” he said.
“We’ve got 40,000 visitors coming every year… it actually contributes to New Zealand Inc.”
In a statement, Regional Development Minister Shane Jones told 1News, “Energy security is crucial for regional New Zealand and I support local efforts to improve it”.
“I don’t want to pre-empt any application to the Regional Infrastructure Fund but if it meets the eligibility criteria, and landowners can agree on where the project may be located, then that is good news for Rakiura,” Jones – who is also the Associate Energy Minister – added.
Davis, the local resident, hopes it’ll happen soon.
“The time it takes for that [the solar farm] to happen, how many families will lose out from living here? They will have to leave because of the prices.”
