Appendix I: Economic Modelling Results
I.1 Project Aqua, No Irrigation Development
Table 55: Present Value of Project Aqua Under Base Assumptions (7.5%, 30 Years) | Item | $ | $ |
| Benefits | | |
| Investment Avoided With Project Aqua | | |
| Capital Expenditure | $2063.7m | |
| Operations And Maintenance | $510.2m | |
| Incremental Greenhouse Gas Emission Cost | $104.6m | |
| Incremental Fuel Cost | $237.2m | $2915.6m |
| Irrigation Sector Expansion | | |
| Increased Agricultural Output | $0.0m | $0.0m |
| Economy Wide Benefits | | |
| Reduced Electricity Charges | $3.7m | $3.7m |
| Present Value of Benefits | | $2919.4m |
| Costs | | |
| Electricity Generation Investment With Project Aqua | | |
| Capital Expenditure | $2099.3m | |
| Operations And Maintenance | $451.4m | |
| Incremental Transmission Costs | $16.8m | |
| Reserve Plant | $0.0m | |
| Agricultural Output Contraction | $20.2m | |
| On-Farm Infrastructure - Renew/Mitigate | $0.9m | |
| Operations And Maintenance - Renew/Mitigate | $1.7m | $2590.2m |
| Irrigation Development Investment | | |
| Off-Farm Infrastructure | $0.0m | |
| On-Farm Infrastructure | $0.0m | |
| On-Farm Transition | $0.0m | |
| Operations and Maintenance Cost | $0.0m | |
| Incremental Greenhouse Emissions Costs | $0.0m | |
| Lost Generation Capacity | $0.0m | $0.0m |
| Present Value of Costs | | $2590.2m |
| Net Present Value | | $329.1m |
| Net Present Value (5.0%, 30 years) | | $701.4m |
| Net Present Value (10.0%, 30 years) | | $149.3m |
I.2 Irrigation Development, No Project Aqua
Table 56: Net Present Value (7.5%, 30 Years) of Irrigation, All Schemes | Item | $ | $ |
| Benefits | | |
| Investment Avoided With Project Aqua | | |
| Capital Expenditure | $0.0m | |
| Operations And Maintenance | $0.0m | |
| Incremental Greenhouse Gas Emission Cost | $0.0m | |
| Incremental Fuel Cost | $0.0m | $0.0m |
| Irrigation Sector Expansion | | |
| Increased Agricultural Output | $1078.9m | $1078.9m |
| Economy Wide Benefits | | |
| Reduced Electricity Charges | $0.0m | $0.0m |
| Present Value of Benefits | | $1078.9m |
| Costs | | |
| Electricity Generation Investment With Project Aqua | | |
| Capital Expenditure | $0.0m | |
| Operations And Maintenance | $0.0m | |
| Incremental Transmission Costs | $0.0m | |
| Reserve Plant | $0.0m | |
| Agricultural Output Contraction | $0.0m | |
| On-Farm Infrastructure - Renew/Mitigate | $0.0m | |
| Operations And Maintenance - Renew/Mitigate | $0.0m | $0.0m |
| Irrigation Development Investment | | |
| Off-Farm Infrastructure | $258.2m | |
| On-Farm Infrastructure | $136.8m | |
| On-Farm Transition | $259.6m | |
| Operations and Maintenance Cost | $105.2m | |
| Incremental Greenhouse Gas Emission Cost | $29.7m | |
| Lost Generation Capacity | $166.8m | $956.4m |
| Present Value of Costs | | $956.4m |
| Net Present Value | | $122.5m |
| Net Present Value (5.0%, 30 years) | | $351.2m |
| Net Present Value (10.0%, 30 years) | | -$23.1m |
Major Irrigation Assumptions:
- Mid Point Agricultural Returns (Optimistic Case 124,250ha)
- Mid Point Irrigation Demands
- Off-Farm Supply Capital Investment: $1500/ha for diversions outside scheme development
- Lower Bound On Farm Capital Estimates
- Lower Bound O&M Costs, Irrigation Related Greenhouse Gas Emissions
Table 57: Net Present Value (7.5%, 30 Years) of Irrigation Schemes if NPV (5%,30yrs) > 0 | Item | $ | $ |
| Benefits | | |
| Investment Avoided With Project Aqua | | |
| Capital Expenditure | $0.0m | |
| Operations And Maintenance | $0.0m | |
| Incremental Greenhouse Gas Emission Cost | $0.0m | |
| Incremental Fuel Cost | $0.0m | $0.0m |
| Irrigation Sector Expansion | | |
| Increased Agricultural Output | $767.7m | $767.7m |
| Economy Wide Benefits | | |
| Reduced Electricity Charges | $0.0m | $0.0m |
| Present Value of Benefits | | $767.7m |
| Costs | | |
| Electricity Generation Investment With Project Aqua | | |
| Capital Expenditure | $0.0m | |
| Operations And Maintenance | $0.0m | |
| Incremental Transmission Costs | $0.0m | |
| Reserve Plant | $0.0m | |
| Agricultural Output Contraction | $0.0m | |
| On-Farm Infrastructure - Renew/Mitigate | $0.0m | |
| Operations And Maintenance - Renew/Mitigate | $0.0m | $0.0m |
| Irrigation Development Investment | | |
| Off-Farm Infrastructure | $197.7m | |
| On-Farm Infrastructure | $87.0m | |
| On-Farm Transition | $188.8m | |
| Operations and Maintenance Cost | $72.5m | |
| Incremental Greenhouse Gas Emission Cost | $18.3m | |
| Lost Generation Capacity | $13.8m | $578.0m |
| Present Value of Costs | | $578.0m |
| Net Present Value | | $189.8m |
| Net Present Value (5.0%, 30 years) | | $408.4m |
| Net Present Value (10.0%, 30 years) | | $58.6m |
Major Irrigation Assumptions:
- Mid Point Agricultural Returns (76,250ha)
- Mid Point Irrigation Demands
- Off-Farm Supply Capital Investment: $1500/ha for diversions outside scheme development
- Lower Bound On Farm Capital Estimates
- Lower Bound O&M Costs, Irrigation Related Greenhouse Gas Emissions
I.3 Irrigation Development and Project Aqua
Table 58: Net Present Value (7.5%, 30 Years) of Irrigation, All Schemes| Item | $ | $ |
| Benefits | | |
| Investment Avoided With Project Aqua | | |
| Capital Expenditure | $2063.7m | |
| Operations And Maintenance | $510.2m | |
| Incremental Greenhouse Gas Emission Cost | $104.6m | |
| Incremental Fuel Cost | $237.2m | $2915.6m |
| Irrigation Sector Expansion | | |
| Increased Agricultural Output | $1078.9m | $1078.9m |
| Economy Wide Benefits | | |
| Reduced Electricity Charges | $3.7m | $3.7m |
| Present Value of Benefits | | $3998.2m |
| Costs | | |
| Electricity Generation Investment With Project Aqua | | |
| Capital Expenditure | $2099.3m | |
| Operations And Maintenance | $451.4m | |
| Incremental Transmission Costs | $16.8m | |
| Reserve Plant | $0.0m | |
| Agricultural Output Contraction | $20.2m | |
| On-Farm Infrastructure - Renew/Mitigate | $0.9m | |
| Operations And Maintenance - Renew/Mitigate | $1.7m | $2590.2m |
| Irrigation Development Investment | | |
| Off-Farm Infrastructure | $258.2m | |
| On-Farm Infrastructure | $136.8m | |
| On-Farm Transition | $259.6m | |
| Operations and Maintenance Cost | $105.2m | |
| Incremental Greenhouse Gas Emission Cost | $29.7m | |
| Lost Generation Capacity | $449.3m | $1238.8m |
| Present Value of Costs | | $3829.0m |
| Net Present Value | | $169.2m |
| Net Present Value (5.0%, 30 years) | | $625.3m |
| Net Present Value (10.0%, 30 years) | | -$85.2m |
Major Irrigation Assumptions:
- Mid Point Agricultural Returns (Optimistic Case 124,250ha)
- Mid Point Irrigation Demands
- Off-Farm Supply Capital Investment: $1500/ha for diversions outside scheme development
- Lower Bound On Farm Capital Estimates
- Lower Bound O&M Costs, Irrigation Related Greenhouse Gas Emissions
Table 59: Net Present Value (7.5%, 30 Years) of Irrigation Schemes if NPV (5%,30yrs) > 0 | Item | $ | $ |
| Benefits | | |
| Investment Avoided With Project Aqua | | |
| Capital Expenditure | $2063.7m | |
| Operations And Maintenance | $510.2m | |
| Incremental Greenhouse Gas Emission Cost | $104.6m | |
| Incremental Fuel Cost | $237.2m | $2915.6m |
| Irrigation Sector Expansion | | |
| Increased Agricultural Output | $767.7m | $767.7m |
| Economy Wide Benefits | | |
| Reduced Electricity Charges | $3.7m | $3.7m |
| Present Value of Benefits | | $3687.1m |
| Costs | | |
| Electricity Generation Investment With Project Aqua | | |
| Capital Expenditure | $2099.3m | |
| Operations And Maintenance | $451.4m | |
| Incremental Transmission Costs | $16.8m | |
| Reserve Plant | $0.0m | |
| Agricultural Output Contraction | $20.2m | |
| On-Farm Infrastructure - Renew/Mitigate | $0.9m | |
| Operations And Maintenance - Renew/Mitigate | $1.7m | $2590.2m |
| Irrigation Development Investment | | |
| Off-Farm Infrastructure | $197.7m | |
| On-Farm Infrastructure | $87.0m | |
| On-Farm Transition | $188.8m | |
| Operations and Maintenance Cost | $72.5m | |
| Incremental Greenhouse Gas Emission Cost | $18.3m | |
| Lost Generation Capacity | $205.2m | $769.4m |
| Present Value of Costs | | $3359.6m |
| Net Present Value | | $327.4m |
| Net Present Value (5.0%, 30 years) | | $820.6m |
| Net Present Value (10.0%, 30 years) | | $64.5m |
Major Irrigation Assumptions:
- Mid Point Agricultural Returns (76,250 ha)
- Mid Point Irrigation Demands
- Off-Farm Supply Capital Investment: $1500/ha for diversions outside scheme development
- Lower Bound On Farm Capital Estimates
- Lower Bound O&M Costs, Irrigation Related Greenhouse Gas Emissions
I.4 Irrigation Development (Above Tekapo)
Table 60: Net Present Value (7.5%, 30 Years) of Irrigation, No Project Aqua Installed| Item | $ | $ |
| Benefits | | |
| Investment Avoided With Project Aqua | | |
| Capital Expenditure | $0.0m | |
| Operations And Maintenance | $0.0m | |
| Incremental Greenhouse Gas Emission Cost | $0.0m | |
| Incremental Fuel Cost | $0.0m | $0.0m |
| Irrigation Sector Expansion | | |
| Increased Agricultural Output | $226.8m | $226.8m |
| Economy Wide Benefits | | |
| Reduced Electricity Charges | $0.0m | $0.0m |
| Present Value of Benefits | | $226.8m |
| Costs | | |
| Electricity Generation Investment With Project Aqua | | |
| Capital Expenditure | $0.0m | |
| Operations And Maintenance | $0.0m | |
| Incremental Transmission Costs | $0.0m | |
| Reserve Plant | $0.0m | |
| Agricultural Output Contraction | $0.0m | |
| On-Farm Infrastructure - Renew/Mitigate | $0.0m | |
| Operations And Maintenance - Renew/Mitigate | $0.0m | $0.0m |
| Irrigation Development Investment | | |
| Off-Farm Infrastructure | $23.7m | |
| On-Farm Infrastructure | $32.6m | |
| On-Farm Transition | $56.7m | |
| Operations and Maintenance Cost | $12.5m | |
| Incremental Greenhouse Gas Emission Cost | $6.9m | |
| Lost Generation Capacity | $111.5m | $244.0m |
| Present Value of Costs | | $244.0m |
| Net Present Value | | -$17.1m |
| Net Present Value (5.0%, 30 years) | | -$2.9m |
| Net Present Value (10.0%, 30 years) | | -$32.3m |
Major Irrigation Assumptions:
- Mid Point Agricultural Returns (30,000 ha)
- Mid Point Irrigation Demands
- Lower Bound On Farm Capital Estimates
- Lower Bound Irrigation Related Greenhouse Gas Emissions
Table 61: Net Present Value (7.5%, 30 Years) of Irrigation Above Tekapo, Project Aqua Installed| Item | $ | $ |
| Benefits | | |
| Investment Avoided With Project Aqua | | |
| Capital Expenditure | $2063.7m | |
| Operations And Maintenance | $510.2m | |
| Incremental Greenhouse Gas Emission Cost | $104.6m | |
| Incremental Fuel Cost | $237.2m | $2915.6m |
| Irrigation Sector Expansion | | |
| Increased Agricultural Output | $226.8m | $226.8m |
| Economy Wide Benefits | | |
| Reduced Electricity Charges | $3.7m | $3.7m |
| Present Value of Benefits | | $3146.1m |
| Costs | | |
| Electricity Generation Investment With Project Aqua | | |
| Capital Expenditure | $2099.3m | |
| Operations And Maintenance | $451.4m | |
| Incremental Transmission Costs | $16.8m | |
| Reserve Plant | $0.0m | |
| Agricultural Output Contraction | $20.2m | |
| On-Farm Infrastructure - Renew/Mitigate | $0.9m | |
| Operations And Maintenance - Renew/Mitigate | $1.7m | $2590.2m |
| Irrigation Development Investment | | |
| Off-Farm Infrastructure | $23.7m | |
| On-Farm Infrastructure | $32.6m | |
| On-Farm Transition | $56.7m | |
| Operations and Maintenance Cost | $12.5m | |
| Incremental Greenhouse Gas Emission Cost | $6.9m | |
| Lost Generation Capacity | $161.7m | $295.1m |
| Present Value of Costs | | $2885.3m |
| Net Present Value | | $260.8m |
| Net Present Value (5.0%, 30 years) | | $620.5m |
| Net Present Value (10.0%, 30 years) | | $78.8m |
Major Irrigation Assumptions:
- Mid Point Agricultural Returns (30,000 ha)
- Mid Point Irrigation Demands
- Lower Bound On Farm Capital Estimates
- Lower Bound Irrigation Related Greenhouse Gas Emissions
I.5 Irrigation Development (Above Ohau)
Table 62: Net Present Value (7.5%, 30 Years) of Irrigation, No Project Aqua Installed | Item | $ | $ |
| Benefits | | |
| Investment Avoided With Project Aqua | | |
| Capital Expenditure | $0.0m | |
| Operations And Maintenance | $0.0m | |
| Incremental Greenhouse Gas Emission Cost | $0.0m | |
| Incremental Fuel Cost | $0.0m | $0.0m |
| Irrigation Sector Expansion | | |
| Increased Agricultural Output | $49.1m | $49.1m |
| Economy Wide Benefits | | |
| Reduced Electricity Charges | $0.0m | $0.0m |
| Present Value of Benefits | | $49.1m |
| Costs | | |
| Electricity Generation Investment With Project Aqua | | |
| Capital Expenditure | $0.0m | |
| Operations And Maintenance | $0.0m | |
| Incremental Transmission Costs | $0.0m | |
| Reserve Plant | $0.0m | |
| Agricultural Output Contraction | $0.0m | |
| On-Farm Infrastructure - Renew/Mitigate | $0.0m | |
| Operations And Maintenance - Renew/Mitigate | $0.0m | $0.0m |
| Irrigation Development Investment | | |
| Off-Farm Infrastructure | $12.3m | |
| On-Farm Infrastructure | $9.9m | |
| On-Farm Transition | $8.2m | |
| Operations and Maintenance Cost | $10.4m | |
| Incremental Greenhouse Gas Emission Cost | $2.6m | |
| Lost Generation Capacity | $36.2m | $79.7m |
| Present Value of Costs | | $79.7m |
| Net Present Value | | -$30.6m |
| Net Present Value (5.0%, 30 years) | | -$38.0m |
| Net Present Value (10.0%, 30 years) | | -$28.2m |
Major Irrigation Assumptions:
- Mid Point Agricultural Returns (10,000 ha)
- Mid Point Irrigation Demands
- Off-Farm Supply Capital Investment: $1500/ha
- Lower Bound On Farm Capital Estimates
- Lower Bound O&M Costs ($200/ha/annum), Irrigation Related Greenhouse Gas Emissions
Table 63: Net Present Value (7.5%, 30 Years) of Irrigation, Project Aqua Installed| Item | $ | $ |
| Benefits | | |
| Investment Avoided With Project Aqua | | |
| Capital Expenditure | $2063.7m | |
| Operations And Maintenance | $510.2m | |
| Incremental Greenhouse Gas Emission Cost | $104.6m | |
| Incremental Fuel Cost | $237.2m | $2915.6m |
| Irrigation Sector Expansion | | |
| Increased Agricultural Output | $49.1m | $49.1m |
| Economy Wide Benefits | | |
| Reduced Electricity Charges | $3.7m | $3.7m |
| Present Value of Benefits | | $2968.4m |
| Costs | | |
| Electricity Generation Investment With Project Aqua | | |
| Capital Expenditure | $2099.3m | |
| Operations And Maintenance | $451.4m | |
| Incremental Transmission Costs | $16.8m | |
| Reserve Plant | $0.0m | |
| Agricultural Output Contraction | $20.2m | |
| On-Farm Infrastructure - Renew/Mitigate | $0.9m | |
| Operations And Maintenance - Renew/Mitigate | $1.7m | $2590.2m |
| Irrigation Development Investment | | |
| Off-Farm Infrastructure | $12.3m | |
| On-Farm Infrastructure | $9.9m | |
| On-Farm Transition | $8.2m | |
| Operations and Maintenance Cost | $10.4m | |
| Incremental Greenhouse Gas Emission Cost | $2.6m | |
| Lost Generation Capacity | $57.9m | $101.4m |
| Present Value of Costs | | $2691.6m |
| Net Present Value | | $276.5m |
| Net Present Value (5.0%, 30 years) | | $630.3m |
| Net Present Value (10.0%, 30 years) | | $104.9m |
Major Irrigation Assumptions:
- Mid Point Agricultural Returns (10,000 ha)
- Mid Point Irrigation Demands
- Off-Farm Supply Capital Investment: $1500/ha
- Lower Bound On Farm Capital Estimates
- Lower Bound O&M Costs ($200/ha/annum), Irrigation Related Greenhouse Gas Emissions
I.6 Irrigation Development (Above Benmore)
Table 64: Net Present Value (7.5%, 30 Years) of Irrigation, No Project Aqua Installed| Item | $ | $ |
| Benefits | | |
| Investment Avoided With Project Aqua | | |
| Capital Expenditure | $0.0m | |
| Operations And Maintenance | $0.0m | |
| Incremental Greenhouse Gas Emission Cost | $0.0m | |
| Incremental Fuel Cost | $0.0m | $0.0m |
| Irrigation Sector Expansion | | |
| Increased Agricultural Output | $11.1m | $11.1m |
| Economy Wide Benefits | | |
| Reduced Electricity Charges | $0.0m | $0.0m |
| Present Value of Benefits | | $11.1m |
| Costs | | |
| Electricity Generation Investment With Project Aqua | | |
| Capital Expenditure | $0.0m | |
| Operations And Maintenance | $0.0m | |
| Incremental Transmission Costs | $0.0m | |
| Reserve Plant | $0.0m | |
| Agricultural Output Contraction | $0.0m | |
| On-Farm Infrastructure - Renew/Mitigate | $0.0m | |
| Operations And Maintenance - Renew/Mitigate | $0.0m | $0.0m |
| Irrigation Development Investment | | |
| Off-Farm Infrastructure | $2.5m | |
| On-Farm Infrastructure | $2.0m | |
| On-Farm Transition | $1.6m | |
| Operations and Maintenance Cost | $4.2m | |
| Incremental Greenhouse Gas Emission Cost | $0.5m | |
| Lost Generation Capacity | $3.9m | $14.7m |
| Present Value of Costs | | $14.7m |
| Net Present Value | | -$3.6m |
| Net Present Value (5.0%, 30 years) | | -$3.7m |
| Net Present Value (10.0%, 30 years) | | -$3.8m |
Major Irrigation Assumptions:
- Mid Point Agricultural Returns (2,000 ha)
- Mid Point Irrigation Demands
- Off-Farm Supply Capital Investment: $1500/ha
- Lower Bound On Farm Capital Estimates
- Lower Bound O&M Costs ($200/ha/annum), Irrigation Related Greenhouse Gas Emissions
Table 65: Net Present Value (7.5%, 30 Years) of Irrigation, Project Aqua Installed | Item | $ | $ |
| Benefits | | |
| Investment Avoided With Project Aqua | | |
| Capital Expenditure | $2063.7m | |
| Operations And Maintenance | $510.2m | |
| Incremental Greenhouse Gas Emission Cost | $104.6m | |
| Incremental Fuel Cost | $237.2m | $2915.6m |
| Irrigation Sector Expansion | | |
| Increased Agricultural Output | $11.1m | $11.1m |
| Economy Wide Benefits | | |
| Reduced Electricity Charges | $3.7m | $3.7m |
| Present Value of Benefits | | $2930.4m |
| Costs | | |
| Electricity Generation Investment With Project Aqua | | |
| Capital Expenditure | $2099.3m | |
| Operations And Maintenance | $451.4m | |
| Incremental Transmission Costs | $16.8m | |
| Reserve Plant | $0.0m | |
| Agricultural Output Contraction | $20.2m | |
| On-Farm Infrastructure - Renew/Mitigate | $0.9m | |
| Operations And Maintenance - Renew/Mitigate | $1.7m | $2590.2m |
| Irrigation Development Investment | | |
| Off-Farm Infrastructure | $2.5m | |
| On-Farm Infrastructure | $2.0m | |
| On-Farm Transition | $1.6m | |
| Operations and Maintenance Cost | $4.2m | |
| Incremental Greenhouse Gas Emission Cost | $0.5m | |
| Lost Generation Capacity | $9.0m | $19.8m |
| Present Value of Costs | | $2610.0m |
| Net Present Value | | $320.4m |
| Net Present Value (5.0%, 30 years) | | $689.8m |
| Net Present Value (10.0%, 30 years) | | $141.7m |
Major Irrigation Assumptions:
- Mid Point Agricultural Returns (2,000ha)
- Mid Point Irrigation Demands
- Off-Farm Supply Capital Investment: $1500/ha
- Lower Bound On Farm Capital Estimates
- Lower Bound O&M Costs ($200/ha/annum), Irrigation Related Greenhouse Gas Emissions
I.7 Irrigation Development (Below Waitaki Dam)
Table 66: Net Present Value (7.5%, 30 Years) of Irrigation, No Project Aqua | Item | $ | $ |
| Benefits | | |
| Investment Avoided With Project Aqua | | |
| Capital Expenditure | $0.0m | |
| Operations And Maintenance | $0.0m | |
| Incremental Greenhouse Gas Emission Cost | $0.0m | |
| Incremental Fuel Cost | $0.0m | $0.0m |
| Irrigation Sector Expansion | | |
| Increased Agricultural Output | $491.2m | $491.2m |
| Economy Wide Benefits | | |
| Reduced Electricity Charges | $0.0m | $0.0m |
| Present Value of Benefits | | $491.2m |
| Costs | | |
| Electricity Generation Investment With Project Aqua | | |
| Capital Expenditure | $0.0m | |
| Operations And Maintenance | $0.0m | |
| Incremental Transmission Costs | $0.0m | |
| Reserve Plant | $0.0m | |
| Agricultural Output Contraction | $0.0m | |
| On-Farm Infrastructure - Renew/Mitigate | $0.0m | |
| Operations And Maintenance - Renew/Mitigate | $0.0m | $0.0m |
| Irrigation Development Investment | | |
| Off-Farm Infrastructure | $80.1m | |
| On-Farm Infrastructure | $53.1m | |
| On-Farm Transition | $121.3m | |
| Operations and Maintenance Cost | $85.1m | |
| Incremental Greenhouse Gas Emission Cost | $10.9m | |
| Lost Generation Capacity | $0.0m | $350.4m |
| Present Value of Costs | | $350.4m |
| Net Present Value | | $140.8m |
| Net Present Value (5.0%, 30 years) | | $269.1m |
| Net Present Value (10.0%, 30 years) | | $62.7m |
Major Irrigation Assumptions:
- Mid Point Agricultural Returns (44,500ha)
- Mid Point Irrigation Demands
- Off-Farm Supply Capital Investment: $1500/ha for diversions outside scheme development for diversions outside scheme development
- Lower Bound On Farm Capital Estimates
- Lower Bound O&M Costs, Irrigation Related Greenhouse Gas Emissions
Table 67: Net Present Value (7.5%, 30 Years) of Irrigation, Project Aqua and No Integration| Item | $ | $ |
| Benefits | | |
| Investment Avoided With Project Aqua | | |
| Capital Expenditure | $2063.7m | |
| Operations And Maintenance | $510.2m | |
| Incremental Greenhouse Gas Emission Cost | $104.6m | |
| Incremental Fuel Cost | $237.2m | $2915.6m |
| Irrigation Sector Expansion | | |
| Increased Agricultural Output | $491.2m | $491.2m |
| Economy Wide Benefits | | |
| Reduced Electricity Charges | $3.7m | $3.7m |
| Present Value of Benefits | | $3410.5m |
| Costs | | |
| Electricity Generation Investment With Project Aqua | | |
| Capital Expenditure | $2099.3m | |
| Operations And Maintenance | $451.4m | |
| Incremental Transmission Costs | $16.8m | |
| Reserve Plant | $0.0m | |
| Agricultural Output Contraction | $20.2m | |
| On-Farm Infrastructure - Renew/Mitigate | $0.9m | |
| Operations And Maintenance - Renew/Mitigate | $1.7m | $2590.2m |
| Irrigation Development Investment | | |
| Off-Farm Infrastructure | $80.1m | |
| On-Farm Infrastructure | $53.1m | |
| On-Farm Transition | $121.3m | |
| Operations and Maintenance Cost | $85.1m | |
| Incremental Greenhouse Gas Emission Cost | $10.9m | |
| Lost Generation Capacity | $108.9m | $459.3m |
| Present Value of Costs | | $3049.5m |
| Net Present Value | | $361.0m |
| Net Present Value (5.0%, 30 years) | | $806.0m |
| Net Present Value (10.0%, 30 years) | | $130.4m |
Major Irrigation Assumptions:
- Mid Point Agricultural Returns (44,500ha)
- Mid Point Irrigation Demands
- Off-Farm Supply Capital Investment: $1500/ha for diversions outside scheme development
- Lower Bound On Farm Capital Estimates
- Lower Bound O&M Costs, Irrigation Related Greenhouse Gas Emissions
Table 68: Net Present Value (7.5%, 30 Years) of Irrigation, Project Aqua and Integration| Item | $ | $ |
| Benefits | | |
| Investment Avoided With Project Aqua | | |
| Capital Expenditure | $2063.7m | |
| Operations And Maintenance | $510.2m | |
| Incremental Greenhouse Gas Emission Cost | $104.6m | |
| Incremental Fuel Cost | $237.2m | $2915.6m |
| Irrigation Sector Expansion | | |
| Increased Agricultural Output | $491.2m | $491.2m |
| Economy Wide Benefits | | |
| Reduced Electricity Charges | $3.7m | $3.7m |
| Present Value of Benefits | | $3410.5m |
| Costs | | |
| Electricity Generation Investment With Project Aqua | | |
| Capital Expenditure | $2099.3m | |
| Operations And Maintenance | $451.4m | |
| Incremental Transmission Costs | $16.8m | |
| Reserve Plant | $0.0m | |
| Agricultural Output Contraction | $20.2m | |
| On-Farm Infrastructure - Renew/Mitigate | $0.9m | |
| Operations And Maintenance - Renew/Mitigate | $1.7m | $2590.2m |
| Irrigation Development Investment | | |
| Off-Farm Infrastructure | $80.1m | |
| On-Farm Infrastructure | $53.1m | |
| On-Farm Transition | $121.3m | |
| Operations and Maintenance Cost | $66.5m | |
| Incremental Greenhouse Gas Emission Cost | $10.9m | |
| Lost Generation Capacity | $88.4m | $420.3m |
| Present Value of Costs | | $3010.5m |
| Net Present Value | | $400.0m |
| Net Present Value (5.0%, 30 years) | | $862.2m |
| Net Present Value (10.0%, 30 years) | | $159.7m |
Major Irrigation Assumptions:
- Mid Point Agricultural Returns (44,500ha)
- Mid Point Irrigation Demands
- Off-Farm Supply Capital Investment: $1500/ha
- Lower Bound On Farm Capital Estimates
- Lower Bound O&M Costs, Irrigation Related Greenhouse Gas Emissions
I.8 Sensitivity Tests: Irrigation Development (Above Tekapo)
Table 69: Net Present Value (7.5%, 30 Years) of Irrigation, No Project Aqua Installed| Item | $ | $ |
| Benefits | | |
| Investment Avoided With Project Aqua | | |
| Capital Expenditure | $0.0m | |
| Operations And Maintenance | $0.0m | |
| Incremental Greenhouse Gas Emission Cost | $0.0m | |
| Incremental Fuel Cost | $0.0m | $0.0m |
| Irrigation Sector Expansion | | |
| Increased Agricultural Output | $226.8m | $226.8m |
| Economy Wide Benefits | | |
| Reduced Electricity Charges | $0.0m | $0.0m |
| Present Value of Benefits | | $226.8m |
| Costs | | |
| Electricity Generation Investment With Project Aqua | | |
| Capital Expenditure | $0.0m | |
| Operations And Maintenance | $0.0m | |
| Incremental Transmission Costs | $0.0m | |
| Reserve Plant | $0.0m | |
| Agricultural Output Contraction | $0.0m | |
| On-Farm Infrastructure - Renew/Mitigate | $0.0m | |
| Operations And Maintenance - Renew/Mitigate | $0.0m | $0.0m |
| Irrigation Development Investment | | |
| Off-Farm Infrastructure | $23.7m | |
| On-Farm Infrastructure | $32.6m | |
| On-Farm Transition | $56.7m | |
| Operations and Maintenance Cost | $12.5m | |
| Incremental Greenhouse Gas Emission Cost | $6.9m | |
| Lost Generation Capacity (SENSITIVITY ASSUMPTION) | $428.1m | $560.5m |
| Present Value of Costs | | $560.5m |
| Net Present Value | | -$333.7m |
| Net Present Value (5.0%, 30 years) | | -$478.9m |
| Net Present Value (10.0%, 30 years) | | -$269.9m |
Major Irrigation Assumptions:
- Mid Point Agricultural Returns (30,000ha)
- Annualised Irrigation Demand: 15 Cumecs
- Lower Bound On Farm Capital Estimates
- Lower Bound Irrigation Related Greenhouse Gas Emissions
Table 70: Net Present Value (7.5%, 30 Years) of Irrigation, No Project Aqua Installed| Item | $ | $ |
| Benefits | | |
| Investment Avoided With Project Aqua | | |
| Capital Expenditure | $0.0m | |
| Operations And Maintenance | $0.0m | |
| Incremental Greenhouse Gas Emission Cost | $0.0m | |
| Incremental Fuel Cost | $0.0m | $0.0m |
| Irrigation Sector Expansion | | |
| Increased Agricultural Output (SENSITIVITY ASSUMPTION) | $341.5m | $341.5m |
| Economy Wide Benefits | | |
| Reduced Electricity Charges | $0.0m | $0.0m |
| Present Value of Benefits | | $341.5m |
| Costs | | |
| Electricity Generation Investment With Project Aqua | | |
| Capital Expenditure | $0.0m | |
| Operations And Maintenance | $0.0m | |
| Incremental Transmission Costs | $0.0m | |
| Reserve Plant | $0.0m | |
| Agricultural Output Contraction | $0.0m | |
| On-Farm Infrastructure - Renew/Mitigate | $0.0m | |
| Operations And Maintenance - Renew/Mitigate | $0.0m | $0.0m |
| Irrigation Development Investment | | |
| Off-Farm Infrastructure | $23.7m | |
| On-Farm Infrastructure | $32.6m | |
| On-Farm Transition | $56.7m | |
| Operations and Maintenance Cost | $12.5m | |
| Incremental Greenhouse Gas Emission Cost | $6.9m | |
| Lost Generation Capacity | $111.5m | $244.0m |
| Present Value of Costs | | $244.0m |
| Net Present Value | | $97.5m |
| Net Present Value (5.0%, 30 years) | | $151.4m |
| Net Present Value (10.0%, 30 years) | | $54.4m |
Major Irrigation Assumptions:
- Upper Bound Agricultural Returns - ADJUSTED See next dot point (30,000ha)
- Irrigated Arable ($2,000/ha), Irrigated Dairy Support ($1,600/ha)
- Lower Bound On Farm Capital Estimates
- Lower Bound Irrigation Related Greenhouse Gas Emissions
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