The NZ Electricity Commission has recently produced a report 'Statement of Opportunities', which sets out some strategic options for electricity generation in New Zealand. 

In a section on 'prospective projects' (which are considered to be 'highly likely') in 2011 the report describes

'..over thirty possible wind projects, ranging from 15 to 300 MW71, located throughout
New Zealand—although with the majority in the North Island — and totalling to nearly
4,000 MW ..'

Our research indicates that each Megawatt of installed wind capacity will cost in the region of 5 Million NZ$ (based on the increasing cost of turbines which is just short of 2 Million Euros per Megawatt plus cost of real-estate, financial costs, legal costs etc). Consequently 4,000 MW of wind power would cost in the order of 20 Billion NZ$!

This cost doesn't account for the additional conventional backup generators that would be needed to support this amount of wind generation. Nor does it account for the cost of integrating wind into the national grid, which is significantly more costly than for conventional generators due to the more complicated control requirements for wind.

This installed capacity can be expected to yield a maximum of 1,600 MW per annum (at a generous 40% load). To support this kind of yield using combined cycle gas turbines would cost in the order of 2.8 Billion NZ$.

Given the minor advantage that wind provides (if any) from a greenhouse gas saving perspective, when the backup emissions are accounted for (omitted by carbon credit assessments), it is difficult to understand the logic of such an incredibly expensive wind generation strategy, even if there was zero adverse environmental impact.

The electricity generation market will of course foot the bill and this will inevitably be passed on to the consumer.  Consequently if this strategy prevails we can expect to see the cost of electricity skyrocket, possibly quadruple. A German report estimates a factor of 3.7 due to wind in Europe, whereas in NZ, on our tiny island, we do not have the possibility of exporting spare capacity or importing electricity when there is a shortfall, so costs can be expected to be relatively higher.

Such increases in costs of power will of course mean that production costs in NZ will be so high that remaining industry will shift off shore, which will further impact the economy, which will see us spiral down into 'third world' status. What a nightmare!  Let's hope our politicians, maybe a new set in a few months time, come to their senses, get their heads out of the 'green clouds' and deal with this situation sensibly.