Transpower secures approval for $631 million HVDC inter-island electricity link upgrade in New Zealand

Type: Financing · Technology: Transmission · Country: New Zealand · Value: $631M · Announced: 2026-06-19

Transpower, New Zealand’s state-owned electricity transmission company, secured final approval from the Commerce Commission for a USD 631 million investment to upgrade the country’s high voltage direct current (HVDC) inter-island electricity link. The project involves replacing four undersea cables across Cook Strait, which are nearing the end of their 40-year design life, and installing new cable termination stations at both ends of the link. The HVDC link connects the North and South Islands, enabling power transfer between regions to support grid stability and reliability amid increasing renewable generation. Chief Executive James Kilty emphasized that the upgrade will reduce the risk of unplanned outages as the existing cables age, with the new cables expected to be delivered and installed in the early 2030s. The decision covers Stage One of a broader HVDC upgrade program, while a separate Stage Two proposal for control system and IT upgrades will be submitted later in 2026.

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