New equipment on part of the high voltage direct current (HVDC) link, which connects the North and South Islands, is planned as part of Transpower Net Zero Grid Pathways programme of work.
The spend for the HVDC Stage 1 works was approved by the Commerce Commission in February 2024, with an expectation that Transpower would provide updated analysis that demonstrates a clear benefit to consumers.
The updated modelling was completed and published in May 2024 for industry feedback:
Consultation with the electricity sector and major electricity users confirmed support for the investment. Following the consultation feedback and the subsequent announcement that New Zealand Aluminium Smelter will stay in operation at Tiwai Point until 2044, Transpower has completed further analysis. This has confirmed the benefit to New Zealand remains positive, with a $7 million net benefit expected under a conservative future scenario.
In July 2024, Transpower published our decision to install the new equipment at Haywards and a summary of the submissions:
Submissions received, in full: