The company had been engaged in negotiations with the owners for land use consent having gained water use consent for the project from the Environment Court in November 2010.
Meridian chief executive Mark Binns explained that the company has decided to suspend negotiations given the current flat demand for electricity.
Flat demand for electricity translates into fewer new generation projects required to be developed in the short to medium term.
"North Bank is probably New Zealand’s best hydro opportunity. It would be developed in an already heavily modified catchment, which should reduce its environmental impacts.
"We have got it to a stage where when we find new generation is required we can pick things up at a later time," added Binns.
Meridian will continue to monitor the demand scenario in the region and could revive the project at a later stage.
The North Bank project is proposed generate electricity enough to power about 140,000 homes per annum.
