05 Nov 2008
Toi-EDA tackles power wastage issue
Toi-EDA has gone into bat for the Eastern Bay of Plenty on the issue of wasted surplus electricity.
Last month Manager Marketing and Economic Development Mary Hermanson wrote to Transpower CEO Patrick Strange, expressing Toi-EDA’s concern that surplus electricity generated in the region is not able to be fed into the national grid and re-routed to other parts of the North Island when demand at Kawerau is low.
"Mighty River geothermal plant is a welcome asset to the Eastern Bay of Plenty but cutting back generation at Aniwhenua and Matahina and wasting power seems incongruous when changes could be made to connectivity to overcome the problem," Mrs Hermanson said.
“As the regional economic development agency for Eastern Bay of Plenty Toi-EDA is concerned about the adverse effect this issue could have on future generation projects.
“We are working to increase business development in the region and to minimise risks but we also work in a wider national context and having the ability to share our surplus generation capacity with the rest of the country when our demand is lower, seems commonsense.”
Mr Strange said while the Eastern Bay’s transmission grid had limited capacity to export excess power, since connection of the Mighty River geothermal plant, Transpower had worked with industry to reconfigure the existing grid to minimise any restrictions.
However he admitted the situation could arise where the amount of connected generations could exceed the capacity of the transmission system to handle it at all times.
“Under these conditions, it is indeed possible that some generation may be forced to operate at lower levels and potentially, spill water, steam or wind.
“If this type of situation arises other than very infrequently, the cost to the market is high and the benefits of strengthening the transmission system are clear.
“However if the circumstances of excess generation are rare or unusual, an investment may not be justified,” Mr Strange said.
“If significant additional generation is built in the Eastern Bay of Plenty, it is likely that the potential periods of excess generation will increase and further investment in the transmission system will be justified.
“With the current level of generation however, it is unlikely that significant new transmission investment would be approved by the Electricity Commission.
“I am, however sympathetic to your concerns about wasted resources.”
Mrs Hermanson says Toi-EDA will continue to keep a close eye on the situation. She has also written to Electricity Commission chairman David Caygill about the matter, but has yet to receive a reply.
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