Contact fast-tracks transmission build with Transpower
3 December 2019
Contact fast-tracks transmission build with
Transpower
Contact Energy (Contact) has agreed to co-fund an accelerated work programme by
Transpower to help move renewable electricity generation in the lower South Island north
through the national transmission network. This will be important if the strategic review
currently underway by the owner of the Tiwai Point aluminium smelter results in its
curtailment or closure.
The work on the Clutha-Upper Waitaki Lines Project (CUWLP) by Transpower involves five
projects. Two have been completed and the remaining three would be completed over a
maximum of three summers if curtailment or closure of the aluminium smelter is announced.
Contact Energy CEO Dennis Barnes said Contact’s arrangement with Transpower would
provide Transpower with $5 million in pre-funding to accelerate this work, with the first
tranche taking place this summer. Transpower is looking to optimise the CUWLP work
programme and accelerate its completion.
“We applaud Transpower’s flexibility and pragmatism on accelerating this project. It’s
important for New Zealand and this sort of innovative thinking is what we need, especially
with the uncertainty around the tenure of the Tiwai Point aluminium smelter.”
He was confident the remainder of the work could be accelerated too. “Given the innovation
demonstrated by the team at Transpower for this first stage of the work, I’m confident we
can also work together to reduce the timeframe for the remaining work on the Clutha-Upper
Waitaki Lines Project.”
Mr Barnes said the work would be part funded by Contact initially, but any material reduction
in consumption or closure of the Tiwai Point smelter would further accelerate the need for
Transpower’s investment in transmission upgrades.
“Our view remains that a disorderly exit of the smelter would be a poor outcome for New
Zealand. Sudden closure will affect multiple stakeholders, including all generator retailers. It
would also be detrimental to the Southland economy and the pursuit of our decarbonisation
goals.”
Media Investors
Paul Ford Matt Forbes
paul.ford@contactenergy.co.nz matthew.forbes@contactenergy.co.nz
Ph 021 809 589 Ph 021 072 8578
About Contact Energy
Contact (contact.co.nz) is one of New Zealand’s largest energy retailers and generators.
We’re committed to a sustainable, low carbon energy future for New Zealand. We balance
our commitment to lowering carbon emissions and producing renewable energy, while
maintaining reliable access to energy for our customers. We generate electricity from hydro,
geothermal and gas and have one of the most flexible generation portfolios in the country.
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Other issuers discussed similar conditions around this time
Matched by meaning across NZX announcement text, not keywords — based on our semantic index of announcement bodies.
- MEL — Meridian Energy Limited: Transpower to recommence Clutha-Upper Waitaki Lines Project2019-12-02
“Release M e r i d i a n E n e r g y L i m i t e d ( A R B N 1 5 1 8 0 0 3 9 6 ) A c o m p a n y i n c o r p o r a t e d i n N e w Z e a l a n d L e v e l 2 , 5 5 L a d y E l i z a b e t h L a n e , P O B o x 1 0 8 4 0 , W e l…”
- MEL — Meridian Energy Limited: Meridian Energy Limited Annual Shareholder Meeting2019-10-16
“17 regularly engaged with the smelter owners to help support their continued operation in New Zealand. It is also well understood that given how transmission costs are allocated in New Zealand, the smelter effectively subsidises consumers of electricity outside of Southlan…”