New Generation Connections

At Transpower we want to work with you to ensure your new generation project is a success.

Connecting new generation to the National Grid takes careful and coordinated planning.  Please engage with us early so that Transpower (as Grid Owner and System Operator), our service provider network and your own teams and service providers can meet your expectations in delivering on an expanding programme of work. The overall process is provided in the diagram below as shown in our Generation Connection Guide:

The questions below will help you decide whether you should be talking to us or to a local distribution company in the area you are seeking to establish your generation.

What size are you planning?

Large assets (>50MW) will usually need to connect direct to Transpower's assets.  Most small assets (<40MW) choose to connect via the local distributor's network as transmission level connections are more expensive.  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 the distribution company. You can talk to Transpower and the local distribution company about potential implications including connection charges.  Transmission pricing is regulated by the Electricity Authority. 

How much does it cost to connect to the National Grid?

It is usually lower cost to connect to an existing Transpower substation, but substation capacity can be limited or there may not be a substation near your site.  Where capacity does not exist, establishing a new generation connection to the national grid will be a significant investment; $20m - $40m and upwards depending on the type of generation you’re connecting. 

No two projects are alike, and many of the costs associated with your new generation connection will be specific to the site you build on and its location relative to existing national grid assets.  Deciding where to connect to the national grid will have the most significant impact on cost. 

If, because of geography or strategy, your generation site requires a new Grid Injection Point (GIP) the full cost of that GIP, including foundation works, assets and the build, will need to be funded by you.  It’s important to note that, under regulation, other generators can subsequently connect to that same GIP in the future, without incurring any share of the cost you incurred to first build that GIP.

Do I need to engage with Transpower if I am connecting within a distribution network?

Yes, regardless of whether you are grid connected or distribution connected, if your generation capability will be greater than 1MW you will need to provide information to Transpower and there will be ‘Code’ obligations you must meet.  The Electricity Authority is the source for Code and Compliance information.  Pay particular attention to Parts 3 through Parts 15 of the Electricity Industry Code of Participation. General guidance on your obligations can also be found in the system operator’s Resources for Asset Owners section.

 

For further information check out our documents below:

Generation Connection FAQs [ pdf 120.06 KB ]

Generation Connection Guide [ pdf 1.63 MB ]

Guideline Summary of Obligations [ pdf 141.45 KB ]