NZ Battery E-news - July 2022

Cabinet confirms path for remainder of Phase 1

The Energy and Resources Minister Megan Woods recently gave an update to her Cabinet colleagues on the NZ Battery Project.

Although the feasibility studies into possible dry year solutions are ongoing through the rest of this year, this update to Cabinet confirmed the Project is on the right track and helped refine the scope for the remainder of Phase 1 of the Project.

Cabinet confirmed a pumped hydro scheme at Lake Onslow appears technically feasible at this stage, although more work is needed.

This further work, including the geotechnical investigations underway in the Teviot Valley, will be done over the next few months to analyse potential construction, engineering, cost, timing and consenting, as well as integration with the transmission system.    

Early analysis also shows Lake Onslow could mitigate the dry year problem and would support a pathway to a 100% renewable electricity system. It could also help smooth wholesale prices, and reduce need to overbuild renewable generation to replace fossil fuel generation. But more work is required to incorporate environmental, cultural, social and geotechnical findings, and refine potential design options. This will give a good indication of development timelines and costs for a feasibility level decision.

The Lake Onslow feasibility study that’s underway not only assesses the technical feasibility of such a scheme, but will also weigh up the environmental, cultural, social and commercial considerations.

The area around Lake Onslow is culturally significant and so it is important that we continue to work with mana whenua while exploring the possibility of this scheme. 

It’s also important we understand the possible impacts on the local community and we will be continuing to engage with community members in the coming months. In particular, we appreciate the investigations place uncertainty and stress on a small group of landowners who would be significantly impacted if the scheme was to go ahead. We will continue to work directly with these landowners.

The NZ Battery Project has also been undertaking initial investigations into other battery options, including alternative technologies and other hydro options. 

Of the range of alternative technologies, Cabinet confirmed the NZ Battery Project will narrow its focus from 5 to 3 non-hydro options for the remainder of Phase 1. They are flexible geothermal, hydrogen and biofuels.

The project team is also undertaking analysis to understand what impacts a pumped hydro scheme at Lake Onslow would have on the electricity system, prices and commercial incentives. It is also working with Transpower to understand how it could connect to the grid. These findings will be used to inform the report back to Cabinet at the end of the year. 

Staff changes  

Andrew Millar has been heading the NZ Battery Project team since it was formed in January 2021 and this week moved to a new role outside of MBIE. Andrew joined as the Manager of MBIE’s Energy Projects and Programmes (EPP) team. Dr David Darby who previously held the Sector Engagement role for the wider Energy and Resource Markets team, has been working alongside Andrew over the past couple of weeks and officially took over the reins as EPP Manager, and lead on the NZ Battery Project, on Monday. We wish Andrew the best in his new role. 

Joining David in the Project team is Susan Hall, previously Manager of MBIE’s Communications Policy branch. Susan takes up the new position as EPP Director. She will be supporting the team as it develops its advice to inform Minister Woods’ report back to Cabinet at the end of Phase 1 in  December.