Transpower owns the land at Otahuhu substation but some existing property rights would need to be renegotiated. A resource consent for the work would also be required from Manukau City Council.
There are two important projects that will impact on the medium term (5-6 years) development at Otahuhu substation:
At Otahuhu substation these developments will require new connections for additional incoming and outgoing circuits, new transformers and voltage support equipment.
In the longer term Transpower intends to replace the existing outdoor switchyard with modern new equipment.
GIS stands for Gas Insulated Switchgear – this means that the switchgear is housed inside a building and require less space than AIS. AIS stands for Air Insulated Switchgear meaning that the switchgear is sited outdoors.
As an SOE Transpower is required to operate as a normal business, and this means that it needs to make a commercial return from the investments that it makes. Transpower will be seeking approval from the Electricity Commission to recover the cost of this investment from the electricity companies like generators and distributors, who use the national grid to transport electricity. The pricing formula to achieve a reasonable return will be determined by the Electricity Commission.
The Electricity Commission is a Crown Entity with responsibility for providing oversight of New Zealand’s electricity market.
When Transpower wants to make a major investment, the Electricity Commission has the job of assessing whether the investment is necessary, and whether there are any preferable and achievable alternatives.
Without Electricity Commission approval, Transpower would not proceed with the construction phase of this project.