Source: Radio New Zealand
Three power cables run across Cook Strait and Transpower would like to add a fourth. Supplied / Transpower
- Commerce Commission set to approve $1.14 billion replacement of the Cook Strait power cables
- National grid operator Transpower needs regulator approval to spend
- Current cables 35 years old, near end of life
- Transpower wants to add fourth cable to improve capacity and resilience
- ComCom seeks public submissions
The Commerce Commission says it is inclined to approve a Transpower request to spend $1.14 billion to upgrade, replace, and expand the Cook Strait power cables.
The state-owned national grid operator wants to replace the current 35-year-old cables, which are coming to the end of their operational life, and add an extra cable.
Major capital spending by Transpower and electricity lines companies must be approved by the regulator to ensure they do not take advantage of their monopoly positions.
Associate Commissioner Nathan Strong said the cables were critical electricity transmission infrastructure and vital for national security of supply.
“Installing a fourth cable at the same time unlocks an additional 200MW of capacity, which can reduce long-term electricity market costs and enable the development of lower cost renewables generation in the South Island.”
The commission is asking for [https://www.comcom.govt.nz/regulated-industries/electricity-lines/projects/hvdc-link-upgrade/
public submissions] on the proposal.
Strong said approval of the first stage of the project now would allow necessary ordering of equipment and cable and for work to start in 2028, and cable replacement in the early 2030s.
“The investment would be added to Transpower’s total asset base and recovered gradually over the many decades the equipment is in service.
“Under the benefits based pricing method, these costs would be shared between electricity consumers and generators who benefit from the HVDC (high voltage direct current) link,” Strong said.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
