New Zealand’s state-owned grid operator, Transpower, has received final approval from the Commerce Commission for $631 million investment programme to upgrade the country’s high voltage direct current (HVDC) inter-island link. The project aims to strengthen the electricity connection between New Zealand’s North and South Islands, which plays a critical role in ensuring system reliability, stability and efficient power transfers across the national grid.
The approved investment includes the replacement of ageing HVDC infrastructure, particularly four undersea cables across the Cook Strait that are nearing the end of their 40-year design life. The project also involves the installation of new cable termination stations at both ends of the link. The upgrade is expected to enhance the long-term reliability of the inter-island transmission system and support secure and cost-effective electricity supply across the country.