Major Electricity Development For Western Bay Of Plenty A Step Closer

The western Bay of Plenty is a significant step closer to having an electricity supply that can support expected future demand with today’s Commerce Commission announcement that it will support Transpower’s proposal to invest $83 million into electricity infrastructure in the region. 

Transpower is working with Powerco, which owns and operates the local electricity lines, to coordinate developing electricity infrastructure that will meet the future needs of people who live, work and play in the western Bay of Plenty. 

Transpower Executive General Manager Grid Development Matt Webb said the investment will support the region to thrive. 

“We know that the western Bay of Plenty region has experienced a rapid population increase combined with an increase in economic growth, with large-scale housing, commercial and industrial developments underway,” he said.  

“Projections are for this to continue. We estimate that, by 2035, demand for electricity across Tauranga, Mount Maunganui, Te Puke and Ōmokoroa will increase by at least 40 percent, but potentially by up to 75 percent. By 2050, electricity use could be more than double what it is today. 

“Transpower’s role is to plan ahead so the electricity transmission network, which moves bulk power from where it’s made to where it’s needed, can deliver power where its customers – such as Powerco – need it. The work to increase supply in the western Bay of Plenty will take time to plan and build, so we are pleased the Commission has given us the green light to move ahead with this critical investment now.”  

Powerco General Manager Electricity Karen Frew said taking a coordinated approach with Transpower to assess and deliver the region’s future power needs would help ensure infrastructure was not only built in the right locations, at the right time, but was cost efficient. 

“Both Powerco and Transpower want the same thing – to reliably meet western Bay of Plenty’s energy needs in the years to come – whether that is making sure people building new homes have the electricity they need for modern living or enabling local industry to decarbonise by converting to electricity.  

“To do that, we need to build the electricity infrastructure backbone first. Then Powerco will follow with projects to take the bulk power Transpower supplies to the business parks, community facilities, and local neighbourhoods where people will use it. Together we ensure that supply is available where it’s needed.” 

The Commerce Commission approval includes an additional $2.5 million to support initiatives that could defer or avoid some investment in transmission infrastructure. Known as non-transmission solutions, these include things like large-scale batteries and demand response, where industrial customers or electricity retailers working with their customers shift demand away from peak demand periods.  

While not part of Transpower’s application to the Commerce Commission, Powerco is progressing development and investment plans for the western Bay of Plenty in parallel and is committed to working with local communities in the coming years to ensure it can continue to supply their electricity needs into the future. 

The specific pieces of work that Transpower has received approval to progress are:  

1.Kaitemako investment:increase electricity supply capacity from Kaitemako to western Bay of Plenty by installing a new 220/110 kV interconnecting transformer at Transpower’s Kaitemako substation. 

2.Western corridor investment: increase electricity supply capacity between Kaitemako and Tauranga by replacing the conductor (wires) on part of the electricity transmission line from Kaitemako to Tauranga. 

3.Eastern corridor investments: increase electricity supply capacity between Kaitemako, Te Matai and Tarukenga by: 

•replacing conductor on the line from Okere to Te Matai 
•replacing conductor on the line from Okere to Tarukenga 
•replacing conductor on the line from Kaitemako to Te Matai 
•completing upgrades at Transpower’s substations after the line work is complete. 

4.Non-transmission solutions: support economic alternatives to transmission, if there is the potential to defer some or all the investments past the expected need dates. 

Transpower expects to start work on these infrastructure upgrades in 2026. Transpower’s work is planned to be completed in stages, with its overall regional development work being finished by the end of 2032. 

Information about Transpower’s joint work with Powerco to develop the regional plan is here: https://www.transpower.co.nz/projects/wbop

Information about the proposal approval is available here: https://comcom.govt.nz/regulated-industries/electricity-lines/electricity-transmission/transpower-capital-investment-proposals/transpower-major-capital-proposal/western-bay-of-plenty-region?target=documents&root=366807

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