Transpower looks to cut load

Transpower wants to cut peak load - the demand side - in the upper North Island by 60MW for two large projects between 2012 and 2015. Photo / Dean Purcell

Transpower is looking for bright ideas from firms which have systems to cut peak load during critical rebuilding of the grid and to help reduce future capital spending.

The state-owned enterprise wants to cut peak load - the demand side - in the upper North Island by 60MW during construction and commissioning of two large projects between 2012 and 2015.

Demand-side providers may be lines companies, retailers, industrial users, building owners or any electricity use manager capable of aggregating a group of big users to meet Transpower's targets.

"It means we get to look at options that are not about building with concrete and steel.

"They will help us defer some investment and give us some room when we've got major projects due at the same time," a spokeswoman said.

Transpower had between $10 million and $20 million set aside for the initiative.

In a paper calling for submissions, Transpower says demand-side initiatives would have to be delivered in a sustainable, reliable and repeatable manner.

"Any solution which defers transmission investment must be reliable, for if it fails to provide the expected service even once, the transmission investment is not avoided."

Transpower is in the midst of a $4 billion spending programme to upgrade the grid, including the interisland connection.

It has signed contracts worth $173 million for cable manufacturing and installation on its project to install 37km of underground cabling through Auckland.

Transpower general manager grid projects Mike Carter said work would now start on manufacturing the underground cable with the first cable deliveries expected late this year. Construction work, in preparation for the cable arrival, would begin mid-year.

Commissioning of the project - called the North Auckland and Northland grid upgrade - was targeted for 2013, a year ahead of schedule.

One of the contracts is for a consortium of Nkt Cables and Balfour Beatty UGL to manufacture and install cable between Pakuranga and downtown Auckland, covering about 18km at a value of $82 million. Part of that section would be laid in public roadways, and part would go in the existing Vector tunnel, Transpower said.

The contract for the sections of cable between downtown Auckland and Albany, covering about 19km and with a value of $91 million, had gone to Olex Cables. That cable would cross the harbour bridge and run largely under the northern busway.

The total cost of the project is estimated at up to $500 million, and will include new substations in downtown Auckland and on the North Shore.

- additional reporting NZPA