Transpower urged to explore alternatives to expensive upgrades

Transpower should explore improving the existing electricity infrastructure before it embarks on any expensive upgrades, an energy management expert says.

Ewan Gebbie, executive officer of the Energy Management Association of New Zealand, said improved energy use in institutional and commercial buildings – and making it easier for larger electricity users to reduce their load at peak times – could be an alternative to costly infrastructure investment.

He said there were significant energy-use reduction options available in the lower North Island, which could offset the need for the replacement and upgrade of the Bunnythorpe Haywards A and B lines as proposed by Transpower,” Mr Gebbie said.

“We believe it is in the public’s interest to investigate the viability of demand-side initiatives which can reduce energy consumption in the lower North Island and enable Transpower to defer the proposed upgrades,” he said.

“This would also encourage energy efficiency, cut costs to homes, businesses, industry and the government and reduce the amount of taxpayers’ money committed to infrastructure spending at a time when funds are limited.”

Mr Gebbie said the concept of improving efficiency and reducing demand-side loads had been proven as an alternative to investing in new capacity and could help ensure the reliability of the grid.

“Transpower has already had success in this space with its recent upper South Island demand-side project and from the preliminary investigations into options for deferring new grid investment into Auckland. We encourage Transpower to take the same approach to the lower North Island proposals.”

Investing more in technology such as Interruptible Load (IL) to support New Zealand’s electricity grid when it is under stress was also crucial, he said.

“IL provides a safety valve for the New Zealand electricity grid by bringing additional reserves onto the country’s electricity market. Transpower should be encouraging the installation of additional smart grid terminals on the sites of industrial and commercial electricity users.

“Smart grid terminals immediately detect when the New Zealand electricity grid is under pressure and automatically interrupt load in a managed process, reducing demand on the grid and cutting the need for capital investment in new grid capacity."

Transpower communications manager corporate affairs Rebecca Wilson said the Bunnythorpe-Haywards conductor replacement was being driven by maintenance, not by capacity.

"We need to replace the conductor on both lines because it has reached the end of its economic life - the conductor is now around 30 years old and passes through a corrosive coastal environment," Mrs Wilson said.

Maintenance is critical to ensuring security of supply and safety, so using demand side initiatives was not viable in this situation, she said.

"We fully support the use of demand side management where it is appropriate to be implemented.

"We have used demand side management in the upper South Island successfully in recent years, and we are also currently investigating a demand side management system in the upper North Island."

She said Transpower had a policy of where it could make the most of what it already had, it would.

"We recognise the importance and value that technology and innovative design can provide, and we investigate all options before a new project or upgrade is considered."