01 Apr 2026
The Commerce Commission has given Transpower draft approval for a $1.1 billion investment in New Zealand’s High Voltage Direct Current (HVDC) inter-island electricity link.
The HVDC link connects the North and South Islands, ensuring energy security, resilience and the ability to deliver lowest cost electricity to consumers. Key parts of the link are nearing the end of their expected 40-year lifespan, with renewal needed by the early 2030s.
Transpower Chief Executive James Kilty said replacing the three existing undersea electricity cables, adding a fourth cable to boost electricity transfer capacity and replacing the cable termination stations on either side of Cook Strait will ensure Aotearoa can grow and electrify with confidence.
“Investing in the HVDC link means Kiwis can continue to access the lowest cost electricity around New Zealand each day, which puts downward pressure on overall wholesale electricity prices.
“The link plays an important role in keeping the power system stable. Increasingly, it also ensures we can balance out the more variable electricity generated by solar and wind farms by moving power from hydro and geothermal generation, thermal back up plant, and batteries to communities and businesses across New Zealand when needed,” said Mr Kilty
The HVDC link moves high voltage electricity between Benmore in the South Island and Haywards in the North Island. It includes both overhead lines and, between Ōraumoa / Fighting Bay and Oteranga Bay, undersea electricity cables. The link was first put into service in 1965, with the undersea cables replaced once previously, in 1991.
Transpower anticipates there will be no impact on electricity supply to consumers while the upgrades happen.
Mr Kilty said the HVDC link upgrade programme is one of a series of investments Transpower is working toward to ensure New Zealand stays ahead of the electrification curve and to deliver capacity for New Zealand to grow as the world electrifies.
“We are making a significant investment in refurbishing the grid, which was largely built 50-70 years ago, and in major capital projects throughout the country which connect new generation and load to the grid so that we can continue to deliver the reliable electricity supply New Zealanders expect,” he said.
The Commerce Commission will now consult on its draft decision as part of its process to rigorously test Transpower’s investment plans to make sure the national grid operator continues to deliver Kiwis a reliable electricity supply at the best value for money.
The investment would be gradually recovered through Transpower transmission charges, beginning when the upgrades go into service in the early 2030s and spread over the expected 40-year life of the assets.
Further information, including the full proposal documents, is on Transpower’s website at www.transpower.co.nz/hvdc-upgrade.
ENDS
For further information, please contact:
Transpower’s Communications team on 021 195 8613 or [email protected].
Notes to editors
HVDC link upgrade programme video, photo and map resources for media are available here: HVDC link upgrade programme - media resources