A new initiative between national grid operator Transpower and businesses will help ease electricity demand pressures in the upper North Island at crucial times, says Energy Minister Gerry Brownlee.Transpower said today it had started discussions with int
A new initiative between national grid operator Transpower and businesses will help ease electricity demand pressures in the upper North Island at crucial times, says Energy Minister Gerry Brownlee.
Transpower said today it had started discussions with interested parties on a multi-million dollar smart grid initiative in the upper North Island to help defer investment in new assets.
The project, to which about $10 million in initial funding has been allocated, is part of the $110 million programme approved by the Electricity Commission last month to bring greater reliability in the region.
"We are looking for interruptible load we can reduce temporarily under severe conditions, particularly during very hot summer days in the region," said Transpower chief executive Patrick Strange.
"Businesses will be paid to participate, and agree that their non-essential electricity usage can be reduced automatically under certain conditions."
The initiative means businesses which choose to participate will have their supply adjusted remotely, under agreed conditions.
Mr Strange said it would allow Transpower to defer investment in new assets and provide headroom to meet demand during construction of existing infrastructure upgrades.
A limited trial of similar technology recently in the South Island was successful, he said.
The upper North Island programme will include the installation of two static var compensators, which absorb when transmission voltage is too high or provide reactive support on a transmission network when voltage is too low. They are expected to be installed in Auckland and Northland in 2013 and 2014.
Mr Brownlee said it was pleasing to see Transpower and business working together on such an initiative and it would relieve some pressure on the region's electricity system.
"This technology can be quick and cost-effective, and it heralds an important step towards how electricity demand might be managed in the future," Mr Brownlee said.
