New 3GW HVDC Project to Link Australia & New Zealand
Taslink, a venture founded by the directors of New Zealand's Far North Solar Farm, has revealed plans to construct a high-voltage direct current (HVDC) submarine cable linking the power grids of New Zealand and Australia. This ambitious project aims to facilitate the two-way trade of surplus electricity between the two nations, leveraging their complementary peak demand periods to stabilize and enhance energy supply.
The cable is planned to connect from a point south of Auckland in New Zealand's North Island to Newcastle on the New South Wales central coast in Australia. The project is estimated to cost around NZ $12 billion, with funding currently being sought from private investors. While public funding is not actively being pursued at this stage, the possibility remains open for government involvement in the future.
The proposed HVDC cable will have a capacity of 2-3 gigawatts (GW) in a bipole configuration and will stretch approximately 2,600 kilometers across the Tasman Sea. DC voltage is not confirmed at this stage but is expected to be between 525kV and 640kV. Once completed, it will become the deepest subsea power cable in the world, with sections reaching depths of nearly 5,000 meters. Taslink have already engaged industry experts and key manufacturers who have confirmed feasibility of cable laying at such depths.
The Taslink project promises several significant benefits for both countries. It is projected to increase New Zealand's grid capacity by about 40% of its daytime demand, which will enhance grid stability and allow for greater electricity generation and consumption. Additionally, by enabling the trade of surplus electricity between the two nations, Taslink will support the acceleration of renewable energy development in both markets. Another major advantage is its potential to reduce peak electricity prices by flattening demand and increasing competition within the retail market. Independent analysis suggests that if Taslink had been operational during August 2024, it could have saved New Zealanders approximately $400 million in power costs. Furthermore, the increased stability and reduced prices are expected to foster economic growth by creating a more reliable electricity market that benefits businesses and consumers alike.
Construction of the cable is penciled to begin in 2028, with operations to commence by 2032. This timeline aligns with ongoing efforts to modernize and decarbonize energy systems in both countries, particularly in regions like the Hunter-Central Coast in New South Wales, which is being developed into a significant renewable energy zone. The Taslink project represents a bold step forward in trans-Tasman cooperation and renewable energy innovation.
