Transpower publishes Annual Planning Report 2007

2 April 2007

Transpower publishes Annual Planning Report 2007

Transpower released its second Annual Planning Report today which details the issues impacting on electricity demand and generation in New Zealand over the next 10 years, viewed from the perspective of the transmission network owner.

The report considers the latest demand forecasts and compares these with the transmission capacity in 13 regions covering the country. The periods and places when capacity is approaching its limit are highlighted and possible transmission developments to relieve the situation have been identified in the report.

Transpower’s General Manager, Grid Investment, Tim George said that the report shows Transpower is responding to consumer requirements for reliable power supplies by planning many necessary and varied projects over the next 10 years.

“The Annual Planning Report 2007 underlines the significant amount of future investment needed to meet New Zealanders’ expectation of a secure electricity supply.”

“Investments proposed for the National Grid include some very large projects to cater for increasing demand and the need to address the age and capability of the existing infrastructure. The Annual Planning Report 2007 includes a long list of possible projects ranging in scope from a new transformer in Invercargill to new underground cables to supply North Auckland and Northland. Transpower is working hard to ensure it can deliver capacity where and when it is needed.”

This year’s report has a number of significant changes, including a section on renewable generation, with a particular emphasis on wind.

“The government has indicated their preference to move to more renewable generation and this has the potential to impact on National Grid development. The Annual Planning Report 2007 shows how renewable generation can be accommodated and identifies the challenges of providing cost effective connections in a timely manner to generation proponents in remote, renewable rich areas.” Mr George said.

Transpower has also made a submission to government on the draft New Zealand Energy Strategy. This submission explains how transmission can facilitate the uptake of renewables. Where the Annual Planning Report 2007 provides direction on the technical connection issues, our submission to Government on the draft New Zealand Energy Strategy provides commentary on the regulatory framework.

Another new feature in this year’s report, is a chapter on Transpower’s grid development strategy.

Although Transpower works to a long term strategy for the grid, this is a high level plan. Each investment must still be assessed according to the requirements of the regulatory framework set out in Part F of the Electricity Governance Rules to ensure it is cost effective. Mr George explains.

“All investments, including those outlined in the Annual Planning Report 2007, must be approved by the Electricity Commission or be paid for through an agreement with a customer. This makes sure that consumers only pay for efficient investments.”

The nearly 400-page Annual Planning Report 2007 and Transpower’s submission on the draft New Zealand Energy Strategy are available from the Transpower website, www.transpower.co.nz.

ENDS

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