The Environment Court has declined consent for a windfarm in Central Otago's Lammermoor Range, Meridian Energy says.
Resource consent for Project Hayes, a $2 billion, 176-turbine windfarm, each at a height of a 30-storey building, was granted to the power company in 2006 and 2007, but was subsequently appealed to the Environment Court.
A hearing began in May 2008 and concluded in February this ytear.
In a statement, Meridian spokesman Alan Seay said the court had rejected consent.
The company was disappointed by the decision and it would be assessing the decision in detail to consider its potential responses.
"An awful lot of work went into this project up front but we're in the process now of working through the decision to understand what the rational was and once we've done that we'll look at what our options are," says Seay.
The Environment Court's decision would not be available publicly until next week.
But in its report it criticised Meridian for inadequate research saying its extraordinary effort was not made and even more remarkable that two governments endorsed the proposal without insisting on a cost benefit analysis.
The 630MW windfarm was planned to be big enough to power every home in the South Island.
The first stage would produce about 150MW, with Meridian building more turbines as demand increased.
However, the project was opposed by local residents, who wanted to protect the tussock-clad ranges from 160m-high turbines and 12m-wide access roads.
Several high-profile New Zealanders, including All Black Anton Oliver, artist Grahame Sydney and poet laureate Brian Turner, also spoke out against the proposed windfarm.
On Friday, they and other opponents were celebrating the decision.
"It's a great day in central Otago and it's a great day for central Otago," says Graye Shattky, windfarm opponent.
Sydney said the decision by the court has emphasised that money does not always win.
"I hope people will understand it's not an anti-wind decision, its an anti-this particular site."
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