Transpower’s recent announcement regarding the replacement of its high voltage direct current (HVDC) submarine electricity cables is more than just a routine infrastructure upgrade; it’s a monumental investment poised to shape New Zealand’s energy landscape for the next 40 years. By securing Prysmian, a global leader in cable solutions, Transpower has taken a decisive step toward ensuring that the inter-island power transfer remains robust and reliable as electricity demand continues to rise.
These cables, which facilitate the transfer of up to 15% of New Zealand’s electricity between the North and South Islands, are reaching the end of their expected lifespan. The current cables will have served for 41 years by the time they are replaced in 2032. Acting Chief Executive John Clarke emphasized the urgency of this project, stating, “Replacing and enhancing ageing electricity infrastructure is a priority for Transpower, ensuring New Zealanders can rely on a secure electricity supply even as electricity use grows.” This sentiment underscores the critical nature of the HVDC link in maintaining energy security, especially during peak demand periods and in dry years when hydro resources are limited.
The projected cost of this endeavor is around $450 million, a significant investment that reflects the scale of the project. Clarke’s assertion that securing a supplier now is crucial to navigate supply chain constraints speaks volumes about the challenges facing the global energy sector. With the increasing demand for submarine HVDC cables driven by offshore wind generation and interconnection projects, the competition for manufacturing capacity is fierce. Prysmian’s commitment to manufacturing the cables in Italy before deploying a specialist cable-laying vessel for installation highlights the complexity and logistical considerations involved in such a project.
The strategic partnership with Prysmian not only ensures that Transpower has access to cutting-edge technology but also reinforces its commitment to delivering a high-quality solution tailored to New Zealand’s unique geographical and infrastructural needs. Detlev Waimann from Prysmian noted the importance of deploying their proprietary PRY-CAM monitoring system, which will enhance the operation and maintenance of the cables, ensuring they meet the demands of a modern energy landscape.
As this project unfolds, it will serve as a focal point for discussions around the future of New Zealand’s electricity infrastructure. Transpower has already engaged with the electricity industry to discuss the role of the HVDC link and the options for its replacement, indicating a proactive approach to stakeholder engagement. The upcoming consultations in 2025 will further shape the project’s trajectory, as regulatory approval from the Commerce Commission will be sought to ensure that the investment is both necessary and cost-effective for New Zealanders.
The HVDC link, originally commissioned in 1965, has been instrumental in balancing supply and demand across the islands. It has enabled the efficient transfer of surplus generation from the South Island to the North, particularly during cold peaks and dry years. As the energy landscape evolves with the integration of more renewable sources like wind and solar, the role of this cable will shift toward providing flexibility within the power system.
This replacement project is not just about cables; it symbolizes New Zealand’s commitment to a sustainable energy future. As the country grapples with the challenges of climate change and energy transition, this once-in-a-generation investment sets the stage for a resilient grid that can accommodate the growing demand for clean energy. Transpower’s foresight in initiating this project now ensures that New Zealand will not only meet its current energy needs but also pave the way for a more sustainable and secure energy future. The implications of this investment will resonate across the sector, influencing policy, regulatory frameworks, and the broader conversation about energy security and sustainability in Aotearoa.
