Meridian Energy entered a High Court battle over plans for the country's biggest wind farm and is appealing an Environment Court decision stymieing Project Hayes in Central Otago.

Contact Energy's Clyde Dam on the Clutha River was the last major power station built in the South Island constructed during the 1980s and commissioned in 1992.

Expenditure worth $10 million has already been incurred on project by Meridian. The decision would make it quite difficult to get approval for some other much-needed energy and infrastructure projects, stated Meridian chief executive Tim Lusk.

Project Hayes will be able to produce sufficient electricity to power Christchurch and Dunedin, if the High Court accepts Meridian's application. If high court fails to do so, the state-owned generator and retailer will be pressurized to find other ways to meet the ever increasing consumer demand. They would have to provide an alternative power source for dry winters, as the hydro-generation is controlled at that time.

Wind Energy Association Chief Executive, Fraser Clark shared that to manage dry-year supply problems in New Zealand, wind power was a good option.

He said, "Increasing the amount of hydro just potentially compounds your problems in a dry year. Wind then stands out, especially in the South Island, where you don't get access to geothermal power and natural gas, and coal would be a carbon risk".