Four years ago they built stage one of the project with a smaller water pipe and one turbine to drive their pivot irrigation scheme and it generated 100 kW of electricity. Now they have added another two turbines, laid a 1m diameter pipe the 2.3km from the intake at the river to the power station and can generate 450kW to add another income stream to the business of about $180,000 a year.
That will cover the interest on the full investment of $113,000 a year. As Nigel says, it’s a long-term project.
The Harwood family business involving Dave and his three sons, Nigel, Jonny and Simon, is already a diverse farming operation incorporating an 885-cow dairy herd, 3800 breeding ewes, 1060 red hinds, 100 breeding cows, 400 bulls and 8500 lambs. In all, they own 2432ha with much of it at Upper Takaka and some 500 effective hectares down the remote west coast of Golden Bay beyond Anatori – which Dave describes as heaven or hell depending on the weather – where they finish lambs.
Alongside the Upper Takaka farm runs the Takaka River. They take some water for irrigation, but it’s limited at the time of year they need it most because the Cobb Hydro Station further up river generates on the spot market.
It prompted them to look at the smaller Waitui River running through the farm and when a friend suggested a power station could get water to the farm and pay the farm’s power bills as well, the idea took shape and expanded.
Network Tasman’s upgrade of the substation in Upper Takaka earlier this year was the cue to lay a bigger pipe and add the next two turbines to their power station. They already had their own power cables and fibre installed to the substation so they have full control of the power they are generating without lines charges.
“It’s a standalone project that adds another string to our bow,” Nigel says.
“It adds some extra diversity and we like the idea that it is ticking over and doing what it should do while we’re in bed asleep.”
A couple of years ago the family formed a board including two independent directors who were keen to reduce risks to the farming business and the hydro scheme slots right into that philosophy.
Nigel Harwood with part of the 1m pipe above ground that travels 2.3km to the hydro station.
He points out power prices are still low in New Zealand compared with countries that generate electricity from fossil fuels.
“One of the things in New Zealand is our power prices are so cheap. People don’t think they are, but they are.”
The beauty about hydro is that it has little effect on the environment – water heads into the turbines and out again, back into the river. That makes the resource consent process easier to tackle and a “different kettle of fish to irrigation”.
With their own hydro-electric power station now up and running, they no longer have to worry about the dairy farm’s power bill. The project has taken up a huge amount of time to work out and set up, but for Nigel it is back to the dairy farm now the project is complete.
The pivot irrigators that cover 160ha of the milking platform are powered by their own hydro-produced electricity and, along with about 40ha of K-line, are necessary through summer. Lying in the lee of the mountains delivers a fair dollop of rain much of the year, but in summer it bakes, with soil temperatures reaching 25C. The stocking rate had crept up to 3.2 cows/ha, but the pasture struggled even with irrigation at those high soil temperatures, so this year they’ve dropped down to three cows/ha to more closely align pasture growth in summer with demand. In the past, the dairy side of the operation has used the drystock areas through winter, but it’s aiming more and more at producing its own winter feed and being self sufficient to free up space on the drystock farm.
“We’re doing what everybody else in the industry is doing and running a system without much bought-in feed, though we’ll still do palm kernel for just when it’s needed and a bit of barley, especially in spring.
“Ironically, this year we’re going to have to do more feeding because we had an 88% in-calf rate within the first six weeks. Our staff have done an amazing job all the way through with that.”
The start of calving date has been shifting from the end of July towards August 7. Nigel says it made no difference to the amount of milk produced through the season, but does seem to have improved in-calf rates.
“Sometimes our best in-calf rates don’t necessarily correspond to the best-condition cows and I think it’s the rising plane of nutrition. Last year was a very bad spring and we upped our supplements to look after them, and 88% got in calf in the first six weeks.”
While he’s back talking about cows and milk production, talk on the farm extends to the electricity industry and hydro power as well these days.
“You become a lot more interested in what the world will look like in the future and where electric cars are at and what is happening at Tiwai Point.”
