Transpower inviting proposals to pilot renewable energy projects in Northland

Transpower is calling for expressions of interest to potentially pilot a renewable energy zone in Northland. Photo / NZME

Northland's sunshine and wind have helped propel the region to be considered for the country's first pilot Renewable Energy Zones consultation.

If successful, the Transpower-led pilot could see Tai Tokerau become self-sufficient in electricity over the coming years as it invests in renewable energy generation and feeding power into the national grid.

That would mark a major shift from the current situation where Northlanders pay the most for power prices nationwide.

Northland's abundance of wind and solar resources was behind Transpower's decision to consider the region for the pioneering pilot, backed by lines operators Top Energy and Northpower.

Most parts of Tai Tokerau receive about 2000 hours of sunshine each year and there are strong wind sites along the west coast.

In its consultation documents, Transpower said large volumes of new renewable energy could be generated with incremental network investments, primarily through upgrading existing assets.

"If generation developers in Northland were able to supply 1.5GW of new renewable generation, the region would have the potential to supply 5-10 per cent of New Zealand's electricity through renewables. This could contribute towards the 100 per cent renewable electricity target."

The national grid operator said its Net Zero Grid Pathways Generation Consultation identified the potential for 600MW of grid-scale solar generation and 900MW of wind generation across Northland.

This is on top of the potential for widescale adoption of embedded rooftop solar, which can take advantage of Northland's sunlight hours.

Northland mayoral chairman and Kaipara mayor Jason Smith said investments in renewable energy projects should be supported as the region has an ongoing challenge with the security of electricity supply and Northlanders have been paying the most for power prices in New Zealand.

Ngawha geothermal power station is among renewable energy sources contributing to Northland's energy security. Photo / Peter de Graaf

"There is always the challenge of who pays and where does the money come from, but we now have an opportunity to look at future-focused technology and new roles within it that will enable Northland to develop in different ways.

"Some 20 years ago, there was some discussion about building a large timber mill in Dargaville but that could not happen due to a shortage of power so we are already looking at a fragile and limited electricity network in Northland," he said.

Te Rūnanga Nui o Te Aupōuri Trust chief executive Mariameno Kapa-Kingi said any power generation initiatives were welcomed.

However, she said her iwi was yet to be formally approached by Transpower or the two lines companies.

Te Aupōuri owns land surrounding a site where work is underway on New Zealand's biggest solar power station at Pukenui, on the Aupouri Peninsula, that will generate enough power to cater for 3000 homes.

Other steps are being taken elsewhere in Northland. Mercury is already planning a new 75MW wind farm around 12km northwest of Dargaville.

A visual simulation of what a wind farm to be owned and operated by Tilt Renewables near Dargaville will look like. Photo / Supplied

The wind farm is forecasted to cut carbon emissions from Genesis' thermal generation by an estimated 180,000 tonnes a year and, during construction, will create about 100 jobs.

Mercury's Kaiwaikawe Wind Farm, previously the Omamari Wind Farm, which is expected to be finished by early 2024, subject to resource consent.

Its creation supports Genesis' Future-gen strategy to economically displace baseload thermal generation with 2650GWh a year of new renewable electricity by 2030.

On Renewable Energy Zones, Transpower, Northpower and Top Energy have started considering the preliminary upgrades that may be required across all networks. This includes potential commercial dynamics and possible challenges within the transmission and distribution regulatory frameworks.

The consultation paper aims to attract feedback from iwi, generation developers, local and central government, interest groups and the community at large.

At this stage, there are close to 2GW of potential new generation across over 30 projects, predominantly made up of wind and solar developments.

Transpower said the existing but significantly under-utilised 220KV grid backbone interconnection lines from Auckland to Marsden could export around 300MW of electricity, even during times of interruption and asset outages, and potentially about a further 600MW of power.

A Northland Renewable Energy Zone could not only enable additional renewable generation and utilise existing capacity in the transmission network to get that energy to where it was needed, but it would also strengthen the region's ability to be a net exporter of electricity.

"Northpower's western region from Dargaville to Maungatapere is fully committed to planned projects but has significant potential for further wind and solar generation.

"Similarly, Transpower's line from Maungatapere to Kaikohe is fully committed in terms of available capacity.

"Likewise, Top Energy's network from Kaikohe to Kaitaia is fully committed and there are enquiries for a further 300MW of solar and two significant windfarms on the northern west coast around Kaitāia."

Transpower said through the consultation process, the company hoped to understand the level of support for a Renewable Energy Zone and to gain insight into the potential benefits and/or costs to communities at an economic, social, cultural and environmental level.

If there was sufficient support, Transpower planned to seek expressions of interest from generation developers in the third and fourth quarter of 2022.

Submissions close at 5pm on April 8 and can be made online at transpower.co.nz/REZ.