Should I connect to the grid or my local network?

Deciding where to connect will have a significant impact on your connection costs.

No two projects are the same, and many of the costs associated with your new connection will be specific to the site you build on and its location relative to existing assets. 

How big is your project?

  • Most owners of small assets (< 40 MW) choose to connect via a local distributor's network, as transmission level connections tend to be more expensive. At some sites a transmission-level connection can still be a cost-effective option.
  • Owners of medium-sized assets need to consider the costs and capacity of both options. This should include an assessment on the impact on transmission pricing for you and your distribution company. You can talk to Transpower and your  local distribution company about potential implications, including connection charges. Transmission pricing is regulated by the Electricity Authority.
  • Owners of large assets (> 50 MW) will usually need to connect directly to Transpower's assets (such as a substation) if there is capacity. You will need to apply to connect to the grid and progress through our process to access any spare connection capacity. If no suitable connection assets are available near your site or there is a capacity issue, you may need to establish a new connection (costing upward of $20 million).

 

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Ask us for advice

Please feel free to get in touch with us if you have questions. We are here to help.

Regardless of whether you are planning to connect to a local distribution network or to the national grid, if you are connecting generation greater than 1 MW you will need to comply with the Electricity Authority’s Code and Compliance and engage with our system operator team. Even if there is no grid connection project, we still need to work with you and support you through our system operator and IT processes to have your assets fully commissioned and operational in power and market systems. 

You can read more about the Generation Commissioning Process (for all new generation) in this document or take a look at our Commissioning Generation webpage. 

Our team will advise and support you through the process of commissioning your new asset, including working through the operational data integration requirements. 

Email us at [email protected]. 

Look at network capacity maps

You may be interested in our network capacity maps for planners. Envision is our map tool to visual show transmission network information and planned work, helping you understand the network. Envision Opportunities is a second map tool that shows the potential opportunities for the grid to host new generation connections under different operational scenarios. You'll want to use this one alongside our published connections information which will show you whether other proposed projects in our application, investigation and delivery pipeline may be planning to use available transmission capacity as shown in Envision Opportunities.

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