NZ State-owned Meridian Energy dropped its plan to build a $2 billion wind farm in central Otago following a bad review.

With up to 176 wind turbines, the $2 billion project on the Lammermoor Range would have been the biggest power project in the South Island since the 1980s, and it would have generated enough electricity for Christchurch and Dunedin combined and eventually the whole of the island, TVNZ reported.

Meridian said its decision to withdraw its resource consent applications followed a review of the project, which made officials re-evaluate their priorities.

"Our portfolio has developed considerably and our review showed us that other projects now are a higher commercial priority than Project Hayes [the name of the wind farm project]," said Meridian Chief Executive Mark Binns.

"Withdrawing the consent applications is not only the most prudent commercial decision for Meridian, but also avoids prolonging uncertainty about this project for the community and the project's supporters."

Local residents did not support the project, saying they ought to protect the tussock-clad ranges from the 160m-high turbines and 12m-wide access roads.

Some high-profile New Zealanders, including All Black Anton Oliver, artist Grahame Sydney and poet laureate Brian Turner, also spoke out against the proposed wind farm, TVNZ reported.

"Meridian now has a number of potential development options that would be progressed ahead of Project Hayes," Binns said.

Resource consent for Project Hayes was granted to Meridian in 2006 and 2007, but the Environment Court overturned the consent in November last year.