An energy company has lodged an application to build a $5 million wave-generation plant in the Chatham Islands.
Chatham Islands Marine Energy Limited director Garry Venus says the planned wave generation plant would complement two wind turbines, and could be set up by 2012.
At present, residents pay more than 80 centsper kilowatt hour for electricity produced using diesel.
Mr Venus says that a wave generation plant should stabilise, and hopefully reduce, the price of electricity.
The company has applied to the islands' council for for permission to build the plant.
