Latest news with #Transpower
Scoop
3 days ago
- Business
- Scoop
Gas Decline Increases Urgency For New Electricity Generation
Declining gas availability means New Zealand has to lift the pace at which it is delivering new electricity generation to reliably meet growing demand over the coming years, a new report from Transpower shows. Electricity generation investment is accelerating but until new plant is delivered, the sector must continue to work together to make the most of existing electricity generation assets through careful maintenance of generation units and ensuring sufficient hydro storage and thermal fuel is available to run them across winter. These are key findings from an assessment of New Zealand's electricity generation and supply outlook for the coming decade that has been released by Transpower following consultation with the electricity sector. The final version incorporates views from industry, but findings remain consistent with the consultation draft. Transpower Executive General Manager Operations Chantelle Bramley said the annual Security of Supply Assessment (SOSA), which covers the decade through to 2034, also highlights a clear solution to these security of supply risks over the medium term. 'New Zealand needs to continue to accelerate the speed at which planned investment is delivered if we are going to stay ahead of growing demand and provide the reliable and affordable electricity New Zealand depends on,' she said. Advertisement - scroll to continue reading 'Any delay in new resources entering the market will put more strain on existing resources, impacting the ability to manage energy and capacity challenges, which will impact the sector's ability to meet growth in demand for electricity across New Zealand.' The report shows that the sector is already responding to the challenge with a 350 MW increase in newly commissioned generation since the last assessment in 2024. This is around 3.5% of existing installed generation capacity, which is enough to power Wellington, the Hutt Valley and Kapiti on the average weekday. The quantity of committed projects has also increased by approximately 1,500 MW since the last assessment, or 15% of current installed capacity, as have planned but unconsented projects every year for the next decade. 'These movements indicate the supply pipeline is being developed and continues to expand,' Ms Bramley said. 'However, with so much of the supply pipeline unconsented, there is risk that these projects could be delayed, deferred or dropped. So, it's essential for New Zealand that we pick up the pace and move planned projects quickly through the financing, consenting, design, build and commissioning phases so that they can start contributing much-needed megawatts. 'That's a challenge for the electricity sector, but it's also a challenge for all of New Zealand. We must all pull together to pave the way for this absolutely critical investment in the country's prosperity.' Sector coordination the solution to tight supply Ms Bramley said that New Zealand currently faces two main risks to electricity supply that need to be carefully managed by the electricity sector in the face of declining gas. 'The first is making sure we have enough energy across the winter if it doesn't rain for an extended period, as happened last year and early in 2025, or if there are faults to key equipment, further declines in gas availability or interruptions to coal supplies,' she said. 'The other is ensuring we can meet demand on the coldest mornings and evenings if the wind isn't blowing, the sun isn't shining, and not all other generation is available, either due to maintenance needs, fuel shortages, or faults. 'The market is well aware of the immediate challenges we face due to the sudden decline of gas and is already acting to manage them. This includes working together to make the most of existing electricity generation assets and ensuring there is enough fuel to run them across winter. 'It is good to see the industry advancing arrangements to extend the life of Genesis Energy's third Rankine unit at Huntly and securing coal reserves at that site to reduce the impact on electricity generation from falling gas availability.' The assessment assumes all three Rankine units at Huntly are fuelled and operational but factors in the planned retirement of Contact Energy's TCC gas plant in Taranaki. If there were a plant failure or retirement of a thermal generator like the third Rankine unit, risk would increase and new generation would need to be built even faster. Firm, flexible resources needed to manage capacity risk The assessment shows that more than 85% of the unconsented pipeline is intermittent wind and solar generation, with most of the rest being battery projects. While wind and solar add much needed renewable energy to the system, they must be supported by firm and flexible power system resources that can kick in when the wind is not blowing and the sun is not shining. Batteries are a part of the solution to these short duration capacity risks. New Zealand's first major battery, WEL Network's Rotohiko battery, was commissioned in 2023, Meridian Energy's 100 MW Ruakākā battery has recently been commissioned, and Contact Energy's 100 MW Glenbrook-Ohurua battery will start commissioning this year. Genesis Energy's 100 MW battery at Huntly is expected to be operational by late 2026. Battery projects account for around 2,500 MW of new capacity in the 2025 SOSA pipeline that is slated to be built over the next decade, compared to just over 1,000 MW in the 2024 SOSA. However, over half of these projects are not yet consented, indicating a higher degree of uncertainty. Other firm, flexible resources include gas or biofuel peaking generators that can be fired up at short notice. Hydro lakes are a high-class firm and flexible resource with hydro generation able to be quickly ramped up to help meet peak demand if not already operating at full capacity. Long duration energy support will need to come from thermal plant for some time yet to meet New Zealand's unique 'dry winter' risks, and the arrangements being advanced in relation to Huntly are a good step forward. Demand response also provides flexibility to the system. This is where industrial customers or electricity retailers working with their customers scale back demand during peak periods, typically in response to higher prices. As part of this, consumer energy resources have a role to play in smarter electricity use, including shifting demand away from peak periods. Notes: Transpower prepares and publishes the Security of Supply Assessment (SOSA) annually in its system operator role as required under the Security of Supply Forecasting and Information Policy (SOSFIP). This assessment provides a ten-year view (2025 to 2034) of the balance between supply and demand in the New Zealand electricity system. Market participants, policy makers and other stakeholders use it to inform risk management and investment decisions, including about development of new generation and transmission infrastructure. The analysis uses electricity demand and supply forecasts to assess whether there will be enough energy and capacity to meet security standards over the coming decade. The Electricity Authority sets these energy and capacity security standards, and these represent an efficient level of reliability—that is, where the expected cost of electricity shortages is equal to the expected cost of new generation. The assessment is based on existing electricity generation as well as planned generation at different stages of the development process. Current and high-quality information from the electricity and other stakeholders on existing and future investment in generation, energy storage and demand response is a critical part of the development process. The final report has regard to feedback on a draft report released for consultation on 9 May. Five submissions were received. These can be found on the consultation page of Transpower's website alongside the final assessment and other key documents.
RNZ News
15-06-2025
- Business
- RNZ News
Apology: Live broadcast 4 June, 2025
In our live discussion on Wednesday, 4 June about electricity market reform, former Transpower Chair Keith Turner made statements about the consultancy leading the review, Frontier Economics. RNZ subsequently made that interview available online before undertaking an inquiry of its own regarding those statements. RNZ accepts that certain statements made by Mr Turner were inaccurate and without foundation. RNZ understands from Frontier that it has a strong reputation in its field in Australia and is actively engaging with almost every retail generator in that jurisdiction at the present time. RNZ unreservedly withdraws those statements and apologises to Frontier for publishing Mr Turner's statements without undertaking any independent verification.
Scoop
12-06-2025
- Business
- Scoop
Transpower Proposes Further Investment In Power Supply For Hawke's Bay
Once the Commerce Commission approve the proposal, Transpower expects to start the work in October 2026 and finish by December 2027. Transpower plans to invest $47.0 million to rebuild its Redclyffe substation to better protect Hawke's Bay's electricity supply against flooding and earthquakes. The national electricity transmission grid owner submitted a proposal to the Commerce Commission today for approval to rebuild the main 220kV switchyard on the existing site, raising essential equipment out of the reach of potential flood waters. Transpower's Executive General Manager Grid Development Matt Webb said this is another aspect of the work to rebuild the substation after it was flooded during Cyclone Gabrielle in February 2023. 'After Cyclone Gabrielle, we made a commitment to the people of Hawke's Bay to make their region's power supply more resilient to extreme weather and seismic events,' he said. 'Residents can be confident that our interim upgrades have protected their power supply, and the work we're proposing now will make Redclyffe substation flood resilient to a 1-in-450-year flooding event and much more resilient to earthquakes. 'For the people of Napier, Hastings and surrounding areas, that would mean the power is more likely to stay on during catastrophic weather events like Cyclone Gabrielle.' Mr Webb said Transpower has already completed significant work at Redclyffe substation to improve security of supply in the region since Cyclone Gabrielle. Interim upgrades to the 110 kV switchyard were made in 2023 to make the equipment there more resilient to flooding, and an interim 220 kV control room has also been installed above the flood level. A new 220 kV/110 kV interconnecting transformer is currently being installed that will significantly boost reliability of electricity supply in the region. Under New Zealand's electricity transmission regulatory framework, the Commerce Commission reviews and approves Transpower's work plans to ensure investment is cost-effective and in the long-term interests of New Zealanders. 'We've engaged extensively with local communities on our plans for the region alongside our local lines company partner Unison Networks,' Mr Webb said. 'We believe this is the most cost-effective approach that also takes into account growing demand for electricity in the region. We have strong support from key stakeholders for our proposal and we look forward to the Commerce Commission rigorously testing our plans and costings.' Once the Commerce Commission approve the proposal, Transpower expects to start the work in October 2026 and finish by December 2027. The work can be completed without any impact to local electricity supply, Mr Webb said.
RNZ News
12-06-2025
- Business
- RNZ News
Transpower plan rebuild for Hawke's Bay substation damaged by Cyclone Gabrielle
[wh] Transpower plan rebuild for cyclone-damaged Hawke's Bay substation Transpower insists residents' power supply will not be interrupted during construction. Photo: Supplied / Transpower The national grid operator plans a $47 million rebuild for a cyclone-damaged substation in Hawke's Bay. Transpower has submitted a proposal to the Commerce Commission to rebuild the Redclyffe substation near Napier, which was flooded during Cyclone Gabrielle in 2023. The work would involve a rebuild of the main 220-kilovolt switchyard on the existing site and raising essential equipment to avoid potential future flooding. "After Cyclone Gabrielle, we made a commitment to the people of Hawke's Bay to make their region's power supply more resilient to extreme weather and seismic events," Transpower grid development executive general manager Matt Webb said. "Residents can be confident that our interim upgrades have protected their power supply, and the work we're proposing now will make Redclyffe substation flood resilient to a 1-in-450-year flooding event and much more resilient to earthquakes." New Zealand's electricity regulations require the Commerce Commission to approve Transpower's work plans. Transpower said, after regulatory approval, work would likely start in October next year and finish by December 2027. Webb said the work would not affect local electricity supply. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Scoop
12-06-2025
- Business
- Scoop
Transpower Proposes Further Investment In Power Supply For Hawke's Bay
Transpower plans to invest $47.0 million to rebuild its Redclyffe substation to better protect Hawke's Bay's electricity supply against flooding and earthquakes. The national electricity transmission grid owner submitted a proposal to the Commerce Commission today for approval to rebuild the main 220kV switchyard on the existing site, raising essential equipment out of the reach of potential flood waters. Transpower's Executive General Manager Grid Development Matt Webb said this is another aspect of the work to rebuild the substation after it was flooded during Cyclone Gabrielle in February 2023. 'After Cyclone Gabrielle, we made a commitment to the people of Hawke's Bay to make their region's power supply more resilient to extreme weather and seismic events,' he said. 'Residents can be confident that our interim upgrades have protected their power supply, and the work we're proposing now will make Redclyffe substation flood resilient to a 1-in-450-year flooding event and much more resilient to earthquakes. 'For the people of Napier, Hastings and surrounding areas, that would mean the power is more likely to stay on during catastrophic weather events like Cyclone Gabrielle.' Mr Webb said Transpower has already completed significant work at Redclyffe substation to improve security of supply in the region since Cyclone Gabrielle. Interim upgrades to the 110 kV switchyard were made in 2023 to make the equipment there more resilient to flooding, and an interim 220 kV control room has also been installed above the flood level. A new 220 kV/110 kV interconnecting transformer is currently being installed that will significantly boost reliability of electricity supply in the region. Under New Zealand's electricity transmission regulatory framework, the Commerce Commission reviews and approves Transpower's work plans to ensure investment is cost-effective and in the long-term interests of New Zealanders. 'We've engaged extensively with local communities on our plans for the region alongside our local lines company partner Unison Networks,' Mr Webb said. 'We believe this is the most cost-effective approach that also takes into account growing demand for electricity in the region. We have strong support from key stakeholders for our proposal and we look forward to the Commerce Commission rigorously testing our plans and costings.' Once the Commerce Commission approve the proposal, Transpower expects to start the work in October 2026 and finish by December 2027. The work can be completed without any impact to local electricity supply, Mr Webb said.
