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NWF
06/06/2014 13:49
GENERAL
REL: 1349 HRS NZ Windfarms Limited
GENERAL: NWF: Progress Update
PROGRESS UPDATE
NZ Windfarms ("NWF") wishes to update the market on the following matters:
Palmerston North City Council Resource Consent
The Environment Court provided Palmerston North City Council with a ten week
period to review the results of the recently concluded sound power monitoring
program and the Post Construction Compliance Report that detailed the
findings. This review period has expired, and the Council has sought more
time for their external acoustic expert to review the report. The Council has
appealed the High Court decision setting aside an earlier Environment Court
declaration that the Te Rere Hau wind farm has breached its Resource Consent.
This Appeal Court hearing is set down for 12 August.
Windflow Technology Power Curve Warranty
NWF has instigated dispute resolution proceedings under the Sale and Purchase
Agreement for its fleet of WF500 turbines to determine whether Windflow
Technology has met the terms of the Power Curve Warranty in the Agreement.
Having taken legal advice, NWF considers that Windflow Technology has not met
this warranty. The contract provides for binding arbitration to determine a
dispute.
Asset Value
NWF is currently reviewing the value of the Te Rere Hau wind farm. This
review includes consideration of key value drivers:
1. Output
Output from the TRH wind farm is directly affected by the speed and direction
of the wind resource received on-site. Any change in expected wind speed
would affect the expected output of the Te Rere Hau wind farm
2. Wholesale Electricity Price
NWF is reviewing the current and forecast electricity prices expected in the
wholesale electricity market from the available external data.
3. Future operating costs and the cost of repairs to major items
NWF continues to gain experience in operating the fleet of WF500 turbines.
This improves the understanding of the costs to perform routine maintenance
operations and to effect repairs to key components. NWF has experienced
further failures of key components (pitch bearings, gearboxes and
generators). The likely cost of repairs, the expected failure rate, and the
likelihood of recovery of these costs under the manufacturer's warranties is
being reviewed.
NWF will advise the results of this review when it is complete and the
findings have been audited.
ENDS
For further enquiries contact:
Chris Sadler
Chief Executive Officer
Ph (021) 918 216
End CA:00251299 For:NWF Type:GENERAL Time:2014-06-06 13:49:57
