New Zealand company Taslink has announced plans to build a 2 GW to 3 GW capacity with 2 GW with a high-voltage cable with Australia and New Zealand to facilitate the daily trade of electricity between the two countries.
The founders of the renewable developer Far North Solar Farm, established in Auckland, have unveiled plans to build a submarine cable of 2,600 kilometers that connects the Australian and New Zealand Power Grids.
Far Northern solar energy Directors Richard Homewood and John Telfer have set up new company TasLink with plans to build an Aud 10.85 billion ($ 6.7 billion) High-voltage direct current (HVDC) cable that extends from south of Auckland to Newcastle on the Central Coast of New South Wales.
On New Zealandse Radio, Homewood said that the project would increase generation and transmission capacity in both markets and make the two-way trade in electricity possible to match peak and off-peak periods in both countries and to use the time difference.
“From a daily perspective, New Zealand followed a morning peak followed by Australia, followed by a New Zealand evening peak and followed by Australia,” he said. “So what we have modeled is that there will be a trade between the two markets between the peaks. When a market has surplus electricity at a lower price, we buy it and then sell it on the other market with a discount on what the electricity rate is offered in that market in real time. “
Homewood said that Taslink has carried out technical feasibility studies for more than two years in consultation with a team of global HVDC experts and one of the largest manufacturers in the world to ensure that the submarine cable Can be laid at the required depth and distance. At an expected depth of 5 km below sea level, the cable would be one of the deepest in the world.
“We have now achieved that point that it can continue,” said Homewood, adding that Taslink has also worked closely with the market operators in both Australia and New Zealand to confirm the feasibility of the project. “From the perspective of the power industry, we have clearly been considerably busy with Aemo on the Australian side and Transpower on the New Zealand side as well as the electricity authority here. According to all accounts, they will simply see us as a generator and also as a load, so there is nothing in terms of market integration that is a showstopper, but of course they should consider each other to consider in their daily activities and really start working as one trans Tasman market. “
Taslink has indicated that the construction of the cable could start in 2028, whereby it worked actively in 2032 to work in.
Homewood said that the unveiling of the project coincides with Taslink’s second round of private financing, which will finance the second phase of product development. A third capital increase is planned, aimed at capital investments and although the company is not looking for public investments, the option for the government’s involvement is also a possibility.
“From the perspective of a property, our focus is always aimed at ensuring that the cable can wash its own face,” Homewood said. “We do not go out and ask for government financing, but we are aware of the fact that it will become a very integral and important part of both electricity markets and there may be a wish to government property on one or the other. But again, we don’t go out and ask about it. We ensure that it just stands on its own. “
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