Western Bay of Plenty electricity development update

Transpower has today submitted a proposal to the Commerce Commission for an $83 million investment into electricity infrastructure for the western Bay of Plenty.

Transpower has worked closely with Powerco, the local energy distributor, to develop a joint plan for developing the region’s electricity infrastructure to meet the region’s future needs.

Transpower Acting Executive General Manager Grid Development, Nikki Newham, says: “This planning will ensure the region’s growing demand for electricity continues to be met long term. Today’s proposal is for the first phase of investments identified in the overall development plan for transmission and distribution upgrades.

“The western Bay of Plenty region has experienced a rapid population increase combined with an increase in economic growth with large-scale housing, commercial and industrial developments underway. We expect this to continue.”

“We estimate that by 2035 demand for electricity across Tauranga, Mount Maunganui, Te Puke and Omokoroa will increase by at least 40 percent, but potentially by up to 75 percent. By 2050 electricity use could be over double what it is today.”

“Transpower as owner and operator of the national electricity grid has a responsibility to ensure New Zealanders are supplied with the electricity they need in the years to come. Work like this is complex and takes time to plan and build, which is why we need to work on solutions now,” Nikki Newham says.

Working with Transpower to look holistically at electricity infrastructure in western Bay of Plenty will see better outcomes for the local customers and communities, Powerco General Manager Customer Stuart Dickson says.

“It’s important that both Transpower and Powerco, as the community’s local electricity distributor, work closely together in planning to meet the demand in growth in this rapidly growing region, so we can invest in the right infrastructure, at the right place, at the right time.” 

“Powerco is progressing its development and investment plans in the region and we’re looking forward to working with the local community in the coming years to ensure we can continue to supply their energy needs into the future,” says Stuart Dickson. 

The specific pieces of work that Transpower are proposing include:

1. Kaitemako investment: Increase electricity supply capacity from Kaitemako to western Bay of Plenty by installing a new 220/110 kV interconnecting transformer at Transpower’s Kaitemako substation.

2. Western corridor investment: Increase electricity supply capacity between Kaitemako and Tauranga by replacing the conductor (wires) on part of the electricity line from Kaitemako to Tauranga.

3. Eastern corridor investments: Increase electricity supply capacity between Kaitemako, Te Matai and Tarukenga by:

• Replacing the conductor on the line from Okere to Te Matai
• Replacing the conductor on the line from Okere to Tarukenga
• Replacing conductor on the line from Kaitemako to Te Matai
• Associated upgrades at Transpower substations after the line work is complete

4. Non-transmission solutions: A provisional sum has been included to support economic alternatives to transmission if there is the potential to defer some or all of the investment past the expected need dates. 

If the proposed work is approved by the Commerce Commission, Transpower would expect to start work on the infrastructure upgrades in 2026. All things going according to plan, the work would be completed in stages with this project being finished by the end of 2032.