Plan for three Auckland power stations

There is already a 380 megawatt gas-fired power station at Otahuhu, but Auckland's electricity consumption is growing. Herald file picture

Todd Energy has proposed building three Auckland power stations to meet projected electricity shortages.

The plan could also make the controversial $500 million Waikato to Otahuhu transmission line unnecessary.

Todd's blueprint for a series of small stations - two of them in the heart of Auckland - is in a submission to the Electricity Commission.

The power company rejects the logic behind Transpower's plans for the transmission line from the Waikato to South Auckland, saying Todd's 200MW plants, likely to be gas-fired, could be built close to areas of demand.

"Todd Energy believes that the proposed 400kV transmission line project proposed by Transpower is flawed," said the submission, signed by Todd commercial operations manager Babu Bahirathan.

Todd had been looking into alternatives to the transmission line this year and had "identified some potential generation projects".

It said its plan was "likely to meet all of the key requirements for an alternative to transmission as well as meeting the growing energy requirement and providing dry-year reserve capacity for the foreseeable future".

Todd is proposing to build power stations in a "modular" way, adding extra capacity when needed.

The energy company says this approach offers greater security of supply than a single, larger station.

"Todd Energy has identified three potential sites for the development. Two of the sites are sufficiently large to accommodate multiple 200MW modules, thus providing sufficient capacity for the foreseeable future.

"Two of the sites are in the heart of Auckland, close to the demand."

Another was south of Auckland, but close enough to provide the power close to demand.

Although Todd was capable of developing the project in its own right, it was talking to two other parties about the plan.

The initial 200MW plant would take between 24 months and 30 months. It was working on completing costs for these new stations.

Although not laying out exactly how these would be paid for, the Todd submission said "initial indications are that some form of additional funding will be required".
Electricity Commissioner Roy Hemmingway will decide whether to approve the Transpower line next year. The project has aroused fierce opposition. Landowners along the affected route have suggested alternatives, including better energy efficiency, nuclear power stations and undersea cables from the South Island to Manukau.

On the topic of fuel for its smaller stations, Todd, as is often the case, goes against the prevailing industry opinions.

"Some parties in New Zealand have continued to promote the notion that there is insufficient gas to fuel new power plants. Todd Energy has good knowledge of the gas market and the available reserves in three producing fields."

Todd said existing reserves were sufficient to supply a 200MW plant.

Contact Energy has laid out its plans for a new gas-fired power station alongside its existing plant at Otahuhu. This station would be of a similar size (357MW).

Otahuhu C had advantages over other projects, said Contact, since it was located in Auckland, next to an existing station and already had resource consents.

"At present, though, the project lacks sufficient certainty in gas supply availability, pricing and transport for Contact to proceed with the project."

It has told the commission that any new station would not delay the need for any transmission line.

"It may, however, provide some ability to manage risk to system security in case the transmission upgrade is delayed or estimates of demand growth or system capability prove to be overly optimistic."