In February - April 2024, Transpower invited proposals from potential providers of non-transmission solutions in the upper South Island, to help manage growing electricity use at peak times.
We are currently looking to invest to provide more capacity in the transmission network in the upper South Island (north of Twizel) to meet the growing demand. We sought proposals for non-transmission solutions to consider alongside possible transmission solutions.
Non-transmission solutions
Flexibility services, like batteries and other distributed energy resources, or agreements to help reduce electricity load, could either meet the need or defer the timing of transmission upgrades, including major new lines, at an overall lower cost to Transpower customers.
For example, businesses could defer tasks like irrigation away from peak times or use batteries to reduce their electricity use at times when the network is nearing capacity. There are many innovative possibilities for flexibility services in the future of electricity networks and there may be a range of opportunities or technologies that can support and partner with us.
Transpower’s objective was to obtain sufficient customer demand reductions in the upper South Island to address the forecast capacity constraints. Non-transmission solutions will be compared using the investment test with other transmission solutions to find a preferred option to meet the investment need. A successful non-transmission solution is one that is technically feasible and offers a higher net benefit alternative to a transmission network-only option.
We sought solutions that can be in place by 2029.
Upper South Island
The Request for Proposals (RFP) sought solutions for the area in the upper South Island north of Twizel, as shown on the map below.
The Request for Proposals Process - 2024
RFP document
The Request for Proposals was published on GETS, the Government Electronic Tender Services in February 2024. Transpower held a webinar outlining the RFP and invited interested parties to submit their proposals by 5 April 2024.
Update on Non-Transmission Solutions RFP - June 2024
Transpower received a range of very valuable responses to the RFP. At this stage, we have decided that while there is potential for non-transmission solutions (NTS) to cost-effectively defer investment in new transmission equipment by one or more years, the limited existing NTS capacity and uncertainty around future pricing for when the solution is needed means we will pause our investigation into non-transmission solutions and review them closer to the date the solution is needed.
In the meantime, Transpower will progress our Major Capex Proposal process considering investment options for the upper South Island. We will not include NTS options in the short list consultation later this year. We will re-engage with potential NTS providers closer to the need date and, following that engagement, we will re-evaluate the cost-effectiveness of NTS deferral. We may then discuss with the Commerce Commission options to include a non-transmission solution.
Webinar recording
A webinar on the opportunity to provide flexibility services to Transpower was held on Thursday 29 February. View the webinar recording below.