Frequently Asked Questions

Transpower, Aurora Energy and PowerNet looked at solutions and came up with the four options we thought were most viable. In 2025, we took those four options to the people of Queenstown through meetings and a public consultation on our website.

Submissions reflected a wide range of views. While many submitters supported the need for additional transmission capacity, others questioned whether large-scale infrastructure was the right solution, advocating instead for greater reliance on local generation, storage and demand flexibility.

These perspectives have been carefully considered. Ultimately, our preferred option reflects the need to ensure reliable supply during peak winter demand and major disruptions, while continuing to support local energy initiatives as part of a broader, layered approach.

We’re investigating Option 2. That is the option to build a new transmission line between Cromwell and Queenstown and a new substation near Arrow Junction (double circuit line, 110 kV). The transmission line would have the capacity to power 26,000 more homes plus 700 small-to-medium businesses and 150 larger commercial enterprises.

No single option could meet every aspiration we heard. Some people prioritised local energy independence and rapid deployment of solar and batteries. Others emphasised affordability, system-wide resilience and the need to prepare for long-term growth and extreme events.

The investigation will include a range of environmental assessments and technical studies, such as geotechnical, visual, and ecological assessments, to help identify a suitable location for the new transmission line and substation, and to support any future consent applications. It also includes engagement with residents, councils, mana whenua, local businesses and business and community groups in Cromwell and Queenstown to understand local considerations and gather feedback.

At the end of the investigation, we’ll have an exact technical design, line route and substation site to seek consent for.

In the context of electricity supply, resilience is about the ability of the system to withstand disruptions, adapt to changing conditions and restore power quickly when something goes wrong. For Queenstown, this means being able to keep essential services and homes supplied during peak winter demand, extreme weather events, and major faults.

A new transmission line will add both capacity and redundancy to the electricity network. Redundancy means that if one part of the network is damaged, electricity can still flow without disruption. This is important in Queenstown, where electricity demand is highest during cold winter periods. A stronger transmission network reduces the risk of widespread or prolonged outages and supports faster recovery if disruptions occur.

Local solutions such as solar panels and batteries also contribute to resilience, especially by reducing peak demand and supporting local supply during short-term disruptions. However, these solutions depend on weather conditions, user behaviour and sufficient storage capacity, and they cannot on their own provide the level of system-wide resilience needed long term.

A new transmission line, combined with local energy solutions, creates a more robust, layered system that can adapt to a wider range of future challenges while maintaining reliable electricity supply for the region.

Upgrading the existing transmission line has already been done where it was practical and safe to do so. In 2025, work started to upgrade the transmission line between Cromwell and Queenstown to increase its capacity. When that work is completed later in 2026, the line will be operating at its maximum safe limit.

We have looked at whether further upgrades, such as reconductoring or rebuilding the existing line, could provide enough additional capacity. While these options can appear simpler, they would require extended outages to Queenstown’s electricity supply during construction and would introduce significant risk to homes, businesses and essential services.

We won’t know exactly how long construction will take until we’ve completed the investigation phase. However, large-scale transmission infrastructure projects like this generally take 5-8 years to investigate, consent, plan and deliver.

A new transmission line is a significant investment, which we estimate to be between $134-$225 million. The costs will be explored and refined during the investigation phase.

A new transmission line would be paid for by electricity customers in the region through their power bills, in line with how electricity infrastructure is funded across New Zealand.

We know that affordability is an important concern for households and businesses in Queenstown. That’s why the scale, timing and design of any electricity infrastructure investments are carefully considered. Our considerations included a new transmission line option and other technologies that could help reduce peak demand, such as rooftop solar and batteries.

Our role is to balance the cost of new infrastructure with the risks and costs of not investing – including the potential for electricity shortages, outages during peak periods, and higher costs in the future if action is delayed. Planning ahead allows investments to be staged and optimised, helping to keep long-term costs as manageable as possible for customers.

We won’t know that until the investigation is complete, some time in 2029.

We have already taken steps to increase the amount of electricity that can be supplied to Queenstown using existing infrastructure. In May 2025, we completed the replacement of two transformers at the Frankton substation and the transmission line between Cromwell and Queenstown is currently being upgraded, increasing the amount of power that can be brought to Queenstown from 90 MW to 108 MW.

We’ve also looked closely at non-network options such as rooftop solar, battery storage, demand flexibility and local generation. These solutions can play an important role in reducing peak demand, improving resilience and giving consumers more choice, and they are a key part of Queenstown’s energy future.

However, even with high levels of solar uptake and flexibility, modelling shows that peak winter demand is expected to exceed the limits of the existing transmission network as the region continues to grow and electrify. Local generation and storage can reduce pressure on the system, but they cannot reliably meet peak demand or provide system-wide resilience on their own.

That’s why a combination of approaches is needed: continuing to support local energy solutions, while also planning for larger-scale infrastructure that can ensure a secure and reliable electricity supply during peak demand and major disruption events.

We work hard to limit the impacts to people and properties. When we know more about a proposed route we’ll meet and work closely with those communities and landowners who live and work nearby and who may be impacted.

Electricity use forecasts show that, even with the upgrades of the last couple of years, the existing transmission network may reach capacity in 2032. Large-scale transmission infrastructure projects like this generally take up to 5-8 years to investigate, consent, plan and deliver. Delaying decisions increases the risk that Queenstown could face electricity constraints before alternatives are ready. At the same time, we recognise that construction and change create real, near-term impacts for communities and landowners.

Our approach is to move early enough to manage long-term risk, while taking the time needed to engage carefully, refine designs and minimise disruption wherever possible.