Waikatu and Upper North Island Voltage Management
Preferred bidder announced
Greenfield (construction) or brownfield (government asset divestment) projects needed or likely to occur within the next five years, but is not formally proposed by a state, territory or major local government.
The project or divestment is supported by a state, territory or major local government, is subject to studies or other processes (such as pre-feasibility or scoping studies or business case development), and is likely to proceed to formal announcement.
The project has a firm commitment and timeline from a state, territory or major local government, but has not yet entered the market.
The project or transaction is under procurement (such as a call for Expressions of Interest, requests for tender, or another offer to the market).
Preferred bidder announced
A preferred bidder has been selected and is in exclusive negotiations.
Projects that have progressed to contractual close remain on ANZIP for 12 months.
ANZIP is focused only on major infrastructure activity, above the following thresholds:
Construction projects: > AUD$300m
Investable greenfield & brownfield: > AUD$100m
All greenfield and brownfield projects and divestments: > NZD $100 million
The decommissioning of thermal generation plants in Otahuhu, Southdown and Huntly, alongside the retirement of the Huntley coal generation plant in 2022 will cause voltage management issues in Waikato and the Upper North Island. This will require efficient voltage management to ensure the area continues to receive reliable power. Transpower, the owner and operator of the National Grid, is exploring the potential solution to maintaining voltage stability.
To mitigate the problem, Transpower is proposing investing in a range of projects. These will be divided across two stages of work. Based on a P50 cost estimate, the first stage of works are proposed to cost $144.5 million and include the following:
- a dynamic reactive device in the Upper North Island that can deliver 150 Mvar capacity to 150 Mvar inductive at nominal voltage
- a dynamic reactive device in the Waikato capable of delivering 150 Mvar capacitive to 150 Mvar inductive at nominal voltage
- a post-fault demand management scheme in the Waikato and Upper North Island, and
- preparatory works for stage 2 such as further investigation, consultation, obtaining property rights and environmental approvals.
A Major Capex Proposal was put forward by Transpower in December 2019. Transpower has indicated they will commence work as soon as funding is approved.
Transpower has proposed that the Stage 1 investments are commissioned prior to the middle of 2023.
Last reviewed: 20/12/2019