NZ's Meridian Energy raises cost for wind farm project amid inflation

Meridian Energy

23/08/2022 22:44

Aug 24 (Reuters) - New Zealand's Meridian Energy  MEL.NZ 
said on Wednesday it expected capital costs for Hawke's
Bay-based wind farm project to rise about 13% to NZ$448 million
($278.30 million) due to higher expenses from poor weather and
rising cost inflation.
    The construction has been affected by excessive rains and
damages from cyclone since it began in September last year, but
a better weather from April has helped.
    "The combined impacts of the COVID pandemic, inflationary
pressures and resource constraints will impact the project's
overall costs," Chief Executive Neal Barclay said.
    However, he said the company is working to maintain the
project timeline amid elevated demand for renewable energy
sources. 
    The wind farm, which is touted as one of the biggest in New
Zealand, was on schedule to produce its first power in June 2023
and full power production in June 2024.
    In February last year, Meridian had announced an investment
of NZ$395 million in the project, with an original capacity of
176 megawatts, which remains unchanged.

($1 = 1.6098 New Zealand dollars)

 (Reporting by Savyata Mishra in Bengaluru; Editing by Arun
Koyyur)
 ((Savyata.Mishra@thomsonreuters.com;))