Another 300% cost blowout

Radio NZ report:

A proposed pumped hydro scheme in Central Otago is now estimated to come with a price tag of almost $16 billion – four times more than original projections.

And the National Party is promising to cancel it, should it win the upcoming election.

The Lake Onslow project is designed to serve as a giant battery to help protect against hydro electricity shortages and create more stability in the market. It normally functions like a hydro power station, but with water pumped back up when power is cheap so it can be used to generate electricity in dryer times instead of making up the shortage with fossil fuels.

Energy and Resources Minister Megan Woods said on Thursday the government is moving ahead with the proposal. A detailed business case is expected by late next year.

“Until we address the dry year problem, we will continue to rely on burning expensive and polluting fossil fuels to produce our electricity. That’s bad for the climate and our power bills.”

The cost was originally estimated at about $4b – about a quarter of the new $15.7b figure.

Cost have blown out 300% yet the Government is still wanting to proceed!

This scheme would cost around $10,000 per household, just so one can be 100% renewable rather than 98% or 99% renewable. Madness.