Government Exploring Northern ‘Energy Bridge'
The Ministry of Business, Innovation and Employment (MBIE) will use up to $2m from the Regional Infrastructure Fund to investigate the feasibility of upgrading Northlands electricity infrastructure to act as an energy bridge between Northland and …
Hon Shane Jones
Minister for Regional Development
The Regional Infrastructure Fund will invest up to $2 million to investigate building additional electricity transmission and distribution capacity in Northland, which could also have benefits further afield, Regional Development Minister Shane Jones says.
'New Zealand needs significantly more electricity generation as the economy grows and demand for power increases. Northland is rich in natural renewable resources, such as wind and solar which are suitable for generating renewable energy,' Mr Jones says.
The Ministry of Business, Innovation and Employment (MBIE) will use up to $2m from the Regional Infrastructure Fund to investigate the feasibility of upgrading Northland's electricity infrastructure to act as an 'energy bridge' between Northland and Auckland.
MBIE will also carry out an economic analysis of the potential benefits in conjunction with local stakeholders.
'This project has the potential to unlock $1 billion of private investment in new renewable energy. If this is feasible, Northland could become a significant electricity generator and supplier of power which might have flow-on benefits for Auckland and the rest of the country,' Mr Jones says.
'This investment could increase electricity self-sufficiency in the region and improve the power generation capacity and resilience of the Northland network which will benefit local people. It could also reduce power prices for Auckland and nationally if wholesale prices can be brought down.
'More detailed work needs to be done into the feasibility of expanding Northland's power generation before further government funding can be considered but if the outcome is positive, the payoff could be massive.
'This is a long-term project and there is a lot of water to pass under the bridge yet, but if it goes ahead some new power generation could come online as components are completed, with full commissioning by 2029,' Mr Jones says.
The project aligns with the Coalition Government's goals of building infrastructure and doubling renewable energy generation for New Zealand by 2035 to reduce emissions and enable economic growth.
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