Solar panels will be installed at the Lake Dunstan water treatment plant as Central Otago District Council looks to rein in rising electricity costs.

Water boss Julie Muir told a full council meeting on Wednesday the council was trending over budget on electricity, even after lifting its allowance by 42 per cent.

She said water and wastewater treatment facilities were using “huge amounts” of power, and solar panels were a way of trying to reduce operating costs.

Another location being considered for solar generation is Clyde’s wastewater pump station.

“We’ve got budgets in every year for a number of years to progress some of the work,” Julie said.

“By spending this bit of capital, we'll start to reduce our OpEx (operating expenditure) costs.”

She said staff were “working through” the numbers.

“It’s looking like it would be quite positive for us.”

Julie said the higher electricity costs were being driven by tighter drinking water and wastewater standards and network growth.

She said additional treatment processes were being added across council sites to meet compliance requirements, while population growth was increasing electricity demand.

In response to questioning from councillors, Julie said the council was purchasing electricity at a discounted public-sector rate but was still tracking over budget.

Julie was also asked about investing in new assets that could later transfer to a new water services entity.

She appeared unconcerned and said the associated debt would also transfer with the assets.

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