Gas Asset Management Plan 2024
Powerco has released its Gas Asset Management Plan Update.
Read Powerco’s Gas AMP 2024 Update
The Update keeps customers and stakeholders informed about changes to the gas distributor’s 10-year Asset Management Plan (AMP) which was published in September 2023 and outlines how the company will invest in and manage its network over the next decade.
General Manager Gas Don Elers says this year’s Update focuses on ensuring the gas network is resilient to the impacts of a changing climate, and the transition to renewable gas.
“This year’s Update is called ‘Embedding resilience into a renewable future’ and that encapsulates our view that gas remains essential for the resilience of Aotearoa New Zealand’s energy system as we work towards becoming net-zero by 2050,” he says.
“For us, that means ensuring our network is resilient to the impact of our changing climate, and reducing carbon emissions by transitioning to renewable natural gas. Together, this approach will ensure that customers will continue to have choice about how they energise their homes and businesses well into the future.”
“That fits into Powerco’s ‘grow to zero’ thinking, which is about enabling Kiwis to leverage our clean energy system to grow the economy and fund climate adaptation as we move to net-zero by 2050.”
A gas network that’s resilient to climate change
Earlier this year Powerco released its first Climate Disclosure Report and Climate Adaptation and Resilience Plan.
The documents work together, with the Report outlining the challenges and opportunities Powerco anticipates in relation to climate change, while the Plan explains the strategies the business is putting in place to manage physical climate risks.
That thinking has now informed the Gas AMP, with 56 assets identified as vulnerable to flooding and/or sea level rise and strategies now in place to determine how those risks will be mitigated.
This work ensures that the gas network will be able to withstand, and quickly recover from climate events so that customers can be confident in a resilient supply.
Don says the team are keen to share their learnings with other organisations who are on their own climate response journey.
“During the past year the Powerco team has holistically pulled together our thinking around climate change and what it means for our business, our assets, and ultimately, our customers. It’s something many other organisations are grappling with – particularly infrastructure owners like us – and that’s why we’ve been more than happy to share what we’ve been doing in this space.”
Read Powerco’s Climate Disclosure Report
Read Powerco’s Climate Adaptation and Resilience Plan
Renewable gas – sustainability and security
As well as ensuring its gas network is resilient, Powerco is committed to reducing carbon emissions by transitioning from natural to renewable gas.
That work is currently focused on exploring the production of renewable natural gas (biomethane).
Biomethane is produced by upgrading biogas, which is captured from the breakdown of organic waste like landfill, wastewater and agricultural waste. It can be used in existing gas infrastructure and customer appliances in place of natural gas.
Don Elers says it’s an incredible opportunity for Aotearoa.
“The development of renewable natural gas internationally has been significant in recent years, and there’s huge opportunity to produce and use it here. It can bring together the waste, agricultural and energy sectors to reduce emissions by replacing natural gas, and it creates value from our waste.”
Earlier this year Powerco announced its first two biomethane initiatives and it’s looking for even more.
Read about Powerco’s biogas initiatives here
Transitioning to renewable natural gas will also support New Zealand’s energy security by keeping gas as an option for customers.
Getting the balance right
While gas plays a critical role in Aotearoa New Zealand’s total energy system, and Powerco is optimistic about the opportunity that renewable natural gas presents in reducing emissions, this year’s AMP Update forecasts a decreasing demand for gas over time. The risks associated with declining network use have been carefully considered and balanced against opportunities in the planning and investment decisions outlined in the AMP.
Overall, by focusing on the resilience of its network, and reducing emissions by transitioning to renewable gas, Powerco is well-placed to continue serving its customers well into the future.
For more information about Powerco’s gas network plans, the full AMP is available to read.
Read Powerco’s ten-year Asset Management Plan here
Read next
Aotearoa has a big goal to have net-zero carbon emissions by 2050, and switching to using more renewable energy is one of the best ways to achieve it – it can even become our competitive advantage.
Watch Powerco CEO James Kilty talk about how we can grow to zero