Waikato solar project: Electricity Authority gives WEL Energy green light

The EA has given WEL Energy approval to proceed with a solar project in Waikato. Photo/123rf

The Electricity Authority says it will allow electricity distributor WEL Networks to install two new solar power arrays and a battery storage system on its own network in the Waikato.

The authority said the project would provide just under 64 megawatts worth of energy that can be stored and released into the market, as and when the region needs it most.

Under the current “arms-length” rules, electricity distributors are restricted to installing generation on their networks that is 50MW or lower in capacity.

The rules were put in place some time ago to protect consumers and ensure competition in the market - so that distributors did not use their position to disadvantage competing generators.

The authority said it was prioritising a review of the relevant rules to ensure they encourage and support investment in the regions.

It said encouraging and enabling investment in local electricity generation was critical to building regional resilience in power supply.

“Considering and processing exemptions to the code is a way that the authority can enable market participants to invest in solutions that benefit electricity consumers [but would otherwise fall outside the current regulatory environment] and to test these investments and opportunities in the real world,” the EA said.

WEL Networks had demonstrated that their plans for more distributed generation on their network will facilitate a redistribution of power away from reliance on a central grid, the EA said.

Last month, Meridian Energy was granted resource consent to build a 120-megawatt (MW) solar farm in Northland.

The generator-retailer said with up to 250,000 solar panels, the Ruakākā Solar Farm, south of Whangārei, would be capable of producing 150 to 200 gigawatt hours of electricity a year – enough to power more than half the homes in Northland.