The court’s decision will allow Contact Energy’s geothermal operations to continue until 2026 and will also enable the production of an additional 20MW of renewable generation annually, from January 2008. The consents are expected to be operative by the end of July 2007.

The court’s decision has ended a six-year process that has seen Contact Energy battle with Taupo District Council. According to The National Business Review, the body has spent around NZ$6 million contesting geothermal projects since 2001.

Contact Energy chief executive David Baldwin welcomed the decision. The Wairakei and Poihipi power stations are a vital part of New Zealand’s energy infrastructure and play an important role in providing a secure supply of base-load renewable energy, he said.

Mr Baldwin also said that the consents have reassured the company about its development plans to build a new geothermal power station at Tauhara, and another at Te Mihi to replace the existing Wairakei power station.

The environment court’s decision provides comfort that the national benefits associated with geothermal electricity generation are being properly balanced with the need to protect the interests of local communities, he concluded.