Meridian Energy welcomes announcement

Meridian Energy welcomes Electricity Commission’s announcement on grid upgrade

Meridian Energy today welcomed the Electricity Commission’s notice of its intention to approve Transpower’s amended proposal to upgrade the electricity transmission supply into Auckland and Northland.

“A reliable grid which has adequate capacity to cope with a growing economy is vital, and we welcome today’s announcement which I am sure has been made after a great deal of careful consideration,” says Meridian Energy’s Chief Executive Keith Turner.

Dr Turner says the effect of an unreliable grid was seen in Auckland last year and it is good for the energy sector, and New Zealand as a whole, that the Electricity Commission has given notice of its intention to approve Transpower’s proposal.

“This is a big step forward for the Commission and Transpower, and a big step forward for the energy sector as a whole,” he says.

“Security of supply over time is critical to maintaining confidence in New Zealand’s economy, its growth prospects, investment in business and the welfare of New Zealanders.

“A reliable grid is also critical to keeping the cost of electricity as low as possible as it maintains strategic choices for supply from a range of potential sustainable energy sources.”

Dr Turner says the announcement is particularly important because it is the first transmission investment application to be assessed by the Commission under the Electricity Governance Rules.

“Queued behind today’s decisions are upgrade proposals for the high-voltage direct current (HVDC) link which connects the North and South Island’s power systems (also known as the Cook Strait cable), and for other parts of the national grid.

“The Cook Strait cable is now 40 years old and badly in need of upgrading. There has been no new electricity generating capacity built in the South Island since the Clyde Dam and the South Island is becoming more reliant on electricity generated in the North Island which goes through the cable.”

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