Transpower seeks investment to power New Zealand's energy transition

Transpower today provided the first of its Net Zero Grid Pathways submissions to the Commerce Commission, seeking a $393 million investment in three linked projects as a key step to enabling New Zealand’s decarbonisation.

This submission is the first in Transpower’s strategic investment programme, Net Zero Grid Pathways, that aims to enable efficient dispatch of existing and new renewable generation plus ensure a reliable supply for future demand growth over the interconnected grid from now to 2050.  

The submission seeks approval to install a device to increase maximum electricity flow from the South to North Island on the HVDC link and upgrades to lines in the Central North Island and also the Wairakei area. These three projects will enable Transpower to extract the remaining capacity from the existing grid backbone, in response to the increasing electrification it is already seeing.

Transpower Chief Executive Alison Andrew describes this important moment for the electricity sector. “To successfully meet the climate change challenge of decarbonising our economy, New Zealand will need significant investment in electricity transmission infrastructure. The grid will need to support a larger power system with higher demand for electricity and new grid-connected generation.

“These projects can be delivered by 2030. They will help ensure the high voltage electricity infrastructure we all rely on remains fit for purpose as more of New Zealand’s activities, such as transport and industrial process heat, move from being fossil fuel-powered to powered by electricity. Transpower is looking to ensure that the grid can support the increased load and generation with staged investment to keep its infrastructure one step ahead of electricity demand growth.”

General Manager Grid Development John Clarke says this submission is the product of ongoing industry research and reports, two rounds of formal consultation on a list of possible development projects, and webinars and presentations with others in the energy sector.

“Although the timing of electrification is uncertain, we have also engaged an industry panel and consulted on our development of future scenarios. These proposed projects are relatively low-cost investments that our analysis indicates are also low regrets investments under a range of future scenarios.

“We know the future will be highly electrified. Through these projects we will remove present constraints, keeping power flowing through tactics such as duplexing (adding another circuit to existing towers), thermal upgrades (increasing the amount of electricity a circuit can accommodate) and adding reactive support (improving capacity and availability).

“They also provide time for the planning of potentially more significant grid upgrades which will take 7-10 years to plan, consent and deliver. We are therefore seeking funding from the Commerce Commission to undertake investigations for future demand growth over the interconnected grid. Industry forecasts, including our own Whakamana i Te Mauri Hiko, point toward a 60-80% per cent increase in electricity demand by 2050, so continuing investment will be needed in electricity infrastructure as New Zealand pursues a goal of achieving net zero carbon emissions.”

About Net Zero Grid Pathways
Net Zero Grid Pathways is Transpower’s programme of work that aims to ensure New Zealand’s high voltage electricity infrastructure remains fit for purpose in line with the expectation of a highly electrified economy. As more of New Zealand’s activities, such as transportation and industrial process heat, move from being powered by fossil fuels to renewable electricity, Transpower is looking to ensure that the grid can support the increased load with staged investment that keeps its infrastructure one step ahead of electricity demand growth. www.transpower.co.nz/nzgp
 

Net Zero Grid Pathways 1 - proposed projects and investment

Net Zero Grid Pathways 1 - submission documents for download

Submission documents

For further information, please contact:
Trudy Shannon, Senior Corporate Communications Advisor, 021 835 374