Transpower to pay firms to stop using peak power

Transpower to pay firms to stop using peak power

By Pattrick Smellie

Sept. 1 (BusinessDesk) – National grid operator Transpower is embarking on a project to produce a 21st century version of the “ripple control” system that’s currently used to take pressure off the electricity network during periods of peak demand.

The initiative is intended to allow the equivalent of up to 60 Megawatts of electricity production – equivalent to a year’s average load growth – to be taken out of the electricity system when required, allowing Transpower the chance to save millions of dollars by delaying further grid upgrades.

The smart grid initiative, part of the $110 million to strengthen the upper North Island section of the national grid, will be in operation by late 2012 for major electricity users, while trials will be undertaken to see whether mass market consumers can also be included by a target date of summer 2013.

"This is a smart investment,” said Transpower chief executive Patrick Strange. “We are looking for interruptible load we can reduce temporarily under severe conditions: particularly during very hot summer days in the region. Businesses will be paid to participate, and agree that their non-essential electricity usage can be reduced automatically under certain conditions.”

The target periods will be mid-afternoon between October and March, and the early morning and evening peaks experienced during winter months, particularly June to August.

The project will use “intelligent” smart grid technology, which allows electricity supply to participating businesses to be adjusted remotely, under agreed conditions.

“This technology can be quick and cost-effective, and it heralds an important step towards how electricity demand might be managed in the future,” said Energy Minister Gerry Brownlee.

(BusinessDesk)