When Transpower investigates options to resolve existing or future transmission constraints, we consider a range of transmission investments, and also whether we might procure third party services as transmission alternatives/non-transmission solutions.
Third party services could come from battery energy systems, demand-side management solutions, and other technologies.
By regulation, alternative solutions are called “transmission alternatives” for base capex (enhancement and development <$20m) and “non-transmission solutions” for major capex (enhancement and development investments > $20m).
For our major capex projects (>$20m) our options investigation includes a Request for Information (RFI) process (usually early on in the investigation to understand what options are available) and a Request for Proposal (RFP) process at a later stage in the investigation when the requirements for the solution are better understood (usually alongside the consultation on the shortlist of options).
Whether the preferred investment option is a non-transmission or a transmission solution depends on its economic assessment. Transpower will propose the preferred option to the Commerce Commission for expenditure approval. To date, Transpower’s options analysis has not led us to propose a non-transmission solution as part of a major capex proposal.
For enhancement and development investment <$20m under base capex, our options analysis also routinely investigates the economics of a transmission alternative compared with transmission investment. To date, Transpower’s options analysis has not determined that a transmission alternative is the best option to meet an investment need.
Interested in providing an alternative to transmission investment?
Please provide your details to us to be alerted when we are investigating non-transmission solutions/transmission alternatives for specific needs. Join our contact register here.
More information
- Transpower’s Flexibility Services
- Examples of non-transmission alternative RFIs and RFPs: WUNIVM
- Examples of major capex proposal projects: NZGP1
- Transmission Planning report - a document which may help you identify where there may be opportunities for transmission alternatives
- Envision grid modelling tool - an interactive map to help you identify where there may be opportunities for transmission alternatives