30 Jun 2022
Transpower has released the Net Zero Grid Pathways 1, Stage 1, Shortlist for consultation, seeking views on a shortlist of development plans for grid investment that will enable new renewables and electrification through to 2035.
GM Grid Development John Clarke says this consultation is a key step toward enabling New Zealand’s decarbonisation as electricity demand grows and more new renewable generation connects to the grid.
“The shortlist includes Transpower’s preferred option that we believe gives the best low-regrets investment, with the highest likely benefits to New Zealand,” Mr Clarke said. “This includes grid upgrades to existing lines that can be delivered in two to five years along with approval to further investigate larger scale longer grid upgrades that appear viable from our analysis.
“Exactly when and where new generation will be built, new demand will arise, or when or if major electricity users might exit are uncertain. New Zealand’s Aluminium Smelter at Tiwai Point closing, production of hydrogen for export, or a commitment to Lake Onslow storage could all impact the choices for grid investment out to 2050.
“To ensure we continue to grow the grid capacity in light of these uncertainties, Transpower has undertaken extensive modelling and identified that upgrades to the High Voltage Direct Current link between the North and South Island, and transmission lines in the Central North Island and Wairakei areas would return the greatest benefits to New Zealand.”
The development of the NZGP1 Stage 1 shortlist follows feedback from the public and industry on a long-list consultation undertaken in 2021. Considering the information and preferences gathered through that process, Transpower modelled several combinations of grid upgrades and development to settle on the shortlist.
“Our approach, which we are consulting on, is to firstly seek approval from the Commerce Commission to spend approximately $350 million in undertaking upgrades to existing lines through the Central North Island, Wairakei region, and installing additional reactive support equipment at Haywards substation to provide additional capacity on the HVDC.
“We would also further investigate the installation of a fourth HVDC cable across Cook Strait along with larger scale transmission line work, including the feasibility of new lines. At this stage we are primarily seeking input from electricity industry stakeholders including generation developers and major load users to ensure that these upgrades will meet their future connection needs. Our approach to further investigate more major upgrades including new lines will include opportunities for community and iwi consultation.
“This short list consultation is a key step as we work through the process to gain Commerce Commission approval, other approvals, and ultimately build or upgrade electricity transmission infrastructure.”
The shortlist consultation is open until 5pm 15 August 2022. Written feedback can be emailed to [email protected].
View the NZGP1 Stage 1 Shortlist Consultation document
View a summary of the shortlist consultation
Webinar
Transpower will host a webinar discussing the NZGP1 Stage 1 Shortlist on Friday 8 July at 11am. Register at https://forms.office.com/r/zfuUnBCXD4.
About Net Zero Grid Pathways
Net Zero Grid Pathways is Transpower’s programme of work 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 fossil fuel-powered toward renewable electricity, Transpower is ensuring that the grid can support the increased load with staged investment that keeps infrastructure one step ahead of electricity demand growth.
For further information, please contact:
Rachael Drummond, Senior Corporate Communications Advisor, 021 394 803.