The government found the project "may have significant adverse effects on the environment" around Lake Hāwea. Photo: RNZ
A fast-track referral for a controversial plan to lower Lake Hāwea near Wanaka has been declined by the government.
Contact Energy was seeking to drop the lake's minimum operating level from 338 to 336 metres above sea level - and down to 334 metres in extreme dry years - to boost renewable generation and strengthen electricity supply.
In a letter on Tuesday, the Ministry for the Environment said the company had not satisfied the conditions for fast-track consideration, including proving the project would deliver significant regional or national benefits.
The Infrastructure Minister found the project "may have significant adverse effects on the environment", which would be better dealt with under different legislation, it said.
"The project includes variations to existing resource consent conditions which restrict the operating range of Lake Hāwea, which are required to implement the project. It is not clear whether those variations could be processed by an expert panel under the [Fast-track Approvals Act]."
Locals had warned that lowering the lake could affect water supplies, stir up dust storms, and cause biodiversity loss and loss of recreational amenity.
At a fiery public meeting in December, a large community contingent vowed to battle the application.
Contact Energy said the proposal was akin to an "insurance policy" for New Zealand and the lake would seldom be at the end of its operating range.
Otago Regional Councillor Michael Laws - who joined the vocal opposition - said the declined referral application was "fantastic news".
"The Hāwea community have won a great victory and all of Otago should be in their debt. This was a dog of an idea from day one, and that has been recognised by the minister," he said.
He praised the Hawea community for its "clear and united opposition, its outstanding lobbying skills and its fact-based objections".
The original plan included an emergency limit of 330 metres above sea level.
Contact Energy scaled back that limit last week, saying new modelling had indicated it was no longer necessary.
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
