16 Aug 2023
Transpower is seeking further views on its Net Zero Grid Pathways (NZGP) 1.1 major capex proposal after discussion with the Commerce Commission indicated Transpower had underestimated net benefits in its original proposal.
The NZGP1.1 major capex proposal (MCP) was submitted to the Commerce Commission in December 2022 following consultation with industry on a shortlist of grid investment development plans to enable new renewable generation and electrification through to 2035.
The initial MCP sought approval from the Commission for Transpower to spend approximately $400 million on three major projects: upgrades to existing lines through the Central North Island and Wairakei regions, as well as installing additional reactive support equipment at Haywards substation to provide added capacity on the High Voltage Direct Current (HVDC) system that carries electricity between the North and South Islands.
Transpower General Manager Grid Development John Clarke said Transpower has changed its preferred option from shortlist Option 10 to shortlist Option 14 after recalculating the net benefits following feedback from the Commission.
“Option 14 is the same as Option 10 in terms of where the investment is needed, but the increase in net benefits has increased the certainty around the investment case,” he said.
“Importantly, this will allow us to fund the investigation of subsequent staged projects as we progress each of the HVDC, Central North Island and Wairakei Ring investments. As the power system and economy continues to decarbonise, this will provide additional options for responding to increasing electricity demand and supply uncertainty.
“The new preferred option does not change the outputs of our initial proposal submitted to the Commission; for Stage 1 we are still seeking approval for the same outputs at the original $393m investment”.
View the NZGP1 Updated Preferred Option Consultation.
Submissions are due by 5pm on 6 September 2023 via email to [email protected].
For further information, please contact:
Rachael Drummond, Senior Corporate Communications Advisor, 021 394 803.