Peninsula wind turbines could power city

By 2002, a wind turbine could be supplying power from Banks Peninsula - and the City Council will have a contract to take electricity from the wind turbine for 10 years.

Windflow Engineering Ltd, a Christchurch company run by Geoff Henderson, a professional engineer who has been involved in wind power for 20 years, will provide the energy.

The City Council has recently approved a proposal from Windflow Engineering Ltd to enter into a "hedging" type of power purchase contract. Under this contract the Council will buy the output of the first 500 kW Windflow windmill from 2002 at a price which is slightly higher than what the Council pays under its current supply contract.

However, it is believed that prices are likely to rise in the next few years, and in future the hedging contract could work to the Council's advantage.

The wind turbine will probably be installed on Banks Peninsula, near Gebbies Pass. It is likely that Windflow Engineering will sell the windmill's output directly to a retailer, which would then sell it to the Council. The windmill's annual output will represent about 3.3% of the electricity which the Council buys.

Orion has offered Windflow Engineering Ltd a 10-year network connection contract which also includes the buy-back of power by Orion in peak demand periods. The combined effect of the City Council and Orion contracts will be to provide price certainty for the new company's only source of revenue until it goes on to build and sell subsequent wind turbine units.

Importantly, the total price received from the City Council and Orion is close to the level which Windflow Engineering believes will ensure the viability of future wind power projects.

Windflow Engineering is planning, after setting up its first generator by December 2001, to build another six to 10 generators, and then over five years build up to 60 units per year.

Many wind turbines are in use in countries around the world and in three areas in the lower North Island. It is the fastest growing form of electricity generation world-wide and a major export earner for Denmark (population 5 million). The company will issue a prospectus soon to sell 2 million shares at $1.50 each (representing 67% of the company) to fund the construction of the first Windflow unit.

Minimum subscription will be for 2000 shares ($3000).