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Lower South Island renewables investment proposal - archive

In late 2007 Transpower commenced analysis on economic investments in the lower South Island (enabling renewable generation for the lower South Island) and the central North Island (enabling renewable generation in the Wairakei Ring) also known as the Transmission to Enable Renewable investments (TER). This page contains information and links relating to the lower South Island renewables investment proposal.

Final Decision

On 26 April 2010, the Commission issued a notice of intention to approve Transpower's Lower South Island Renewables Investment Proposal in accordance with rule 15.1 of the Rules.

A public conference was held in Alexandra on 28 June 2010. The purpose of the public conference was to provide affected parties with a final opportunity to comment on the proposal.

Following its consideration of submissions made in conjunction with the public conference, on 9 August 2010, the Commission decided to confirm its decision to approve the proposal and published its final reasons for decision document.

Background

The Commission and Transpower met to discuss how to approach the grid investment test for these projects. Following the meeting, the Commission's Board was presented with a paper seeking the Board's guidance as to how generation scenarios could be developed and the economic analysis undertaken. An interested party asked for this paper to be provided.

Following the January 2008 Board meeting, the Commission wrote to Transpower to provide high-level guidance on these projects.

Timetable and Amendments

A timeline for development and consideration of these two projects was proposed by Transpower and agreed by the Commission in February 2008.

In April 2008, Transpower wrote to the Commission, providing an updated process and timeframe for consideration and approval of the TER proposals.

The Commission agreed to this revised timetable (“the May 2008 timetable”) which anticipated Transpower submitting the TER proposals on 28 October 2008 and the Commission releasing a notice of intention in December 2008.

In August 2008, Transpower wrote to the Commission advising that it was intending to proceed with the Wairakei Ring project, but wished to defer the Lower South Island project for further investigation. Transpower advised that it now expected to submit the Lower South Island project to the Commission in mid 2009.

In May 2009, Transpower advised that it would submit the Lower South Island Renewables Investment Proposal on 30 October 2009. Accordingly, a further revised timetable (“the July 2009 timetable”) was agreed to on 8 July 2009.

Following the lapse of the July 2009 timetable, on 19 November 2009, Transpower and the Commission agreed to an updated timetable “the November 2009 timetable”. The November 2009 timetable anticipated Transpower submitting the Lower South Island Renewables Investment Proposal on 30 November 2009.

The November 2009 timetable lapsed on 8 March 2010 as the Commission had sought further information from Transpower to support the proposal. On 22 March 2010 the Commission and Transpower agreed to a further updated timetable (“the March 2010 timetable”).

Transpower's application

On 30 November 2009, Transpower submitted Part V of the 2009 Grid Upgrade Plan (2009 GUP), Lower South Island Renewables Investment Proposal.

The proposal aimed to facilitate competition in the generation market, supporting renewable generation and improve the security of supply to the lower South Island region. Transpower's proposal was to upgrade five transmission lines between Roxburgh and the Waitaki Valley namely:

• Converting the Roxburgh to Livingstone section of the Roxburgh-Islington A 220kV line to a duplex conductor configuration.

• Converting the Aviemore-Livingstone A 220kV line to a duplex conductor configuration.

• Converting the Aviemore-Benmore A 220kV line to a duplex conductor configuration.

• Converting the Roxburgh to Clyde section of the Roxburgh-Twizel A 220 kV line to a duplex conductor configuration.

• Thermally upgrading the Cromwell-Twizel A 220kV line to a 75oC rating.

Transpower submitted the Lower South Island Renewables Investment Proposal as an economic investment and sought approval of up to $197 million for the proposal. As an economic investment, Transpower had already consulted with the public on the proposal.

Opportunity for comment

Under rule 15.2 of section III of part F of the Electricity Governance Rules 2003, a designated transmission customer, an authorised representative of parties substantially affected by the Grid Upgrade Plan, or Transpower, may, within 10 working days of the date of publication of the notice of intention (that is, by 5pm on 10 May 2010), request that the Commission hold a public conference if they consider that:

• The interests of end use customers are materially adversely affected by the cost or the service outcome of the reliability investment to which the notice relates; or

• The Grid Investment Test has not been applied properly to the Grid Upgrade Plan.

The purpose of a public conference is to provide a final opportunity for comment on the economic investment to which the notice relates.

If no request to hold a public conference is received, or if the Electricity Commission determines not to hold a public conference, the Electricity Commission's decision, as set out in this notice of intention, is final.

Notice of Intention

On 26 April 2010, the Commission published a notice of intention to approve the Lower South Island Renewables Investment Proposal.

Reasons for decision

The Reasons for Decision document presented the Commission's analysis of the Lower South Island Renewables Investment Proposal and explained the reasons supporting the Commissions intention to approve the proposal.

Supporting analysis

The Commission was assisted in its decision-making by further analysis undertaken by Transpower. These documents are attached below and marked as "supporting analysis".

Public conference

On 10 May 2010, the Commission received three requests for a public conference under rule 15.2 of section III of part F of the Electricity Governance Rules 2003 and agreed to hold a public conference. The purpose of the public conference was to provide a final opportunity for comment on the proposed investment.

The Commission invited parties to register their interest in attending the Lower South Island Renewables Investment Proposal public conference.

The conference was held in Alexandra on Monday, 28 June 2010 at:

The Cellar Door function room

143 Centenial Avenue

Alexandra

The Agenda and Presentations are attached below, Genesis Energy and Gerrard Eckhoff made oral presentations

Call for submissions

In order to make the public conference process as transparent and efficient as possible, the Commission invited interested parties (whether intending to be present at the public conference or not) to provide a written submission in order to assist the Commission in making its final decision.

• Call for submissions
  The Commission invited interested parties to provide a written submission decision by no later than 5pm on Wednesday, 16 June 2010.

• Public conference
  A public conference was held in Alexandra on Monday, 28 June 2010.

This page is related to: Transmission.

Back to top Last updated on 25 October 2010