Exploring future options / considerations

Considerations

Non-network off-grid solutions

Non-network technologies such as battery storage, solar, and distributed generation form an important part of the solution to Queenstown’s growing electricity needs, although they are not a complete solution on their own and will require private investment. A diverse mix of options will be required to meet peak winter demand, especially when supply security is variable due to seasonal generation patterns.

Importantly, these technologies can also play a valuable role in deferring larger network infrastructure investments. By supporting peak demand and providing local resilience, especially during winter evenings, they can reduce the immediate pressure on the transmission network. This allows time to plan, design, and deliver major infrastructure projects more efficiently, while still meeting the region’s short- to medium-term energy needs.

While storage and distributed generation can support and enhance Queenstown’s energy resilience, they must be integrated into a broader, multi-layered strategy that includes larger-scale infrastructure investments from the transmission network.

To explore this potential, we engaged independent experts to assess how non-network, off-grid solutions could support Queenstown’s electricity network and defer the need for significant infrastructure upgrades.

The key findings of this analysis are as follows:

1. Suitable solar and battery capacity could help to manage peak demand while progressing the transmission line solution

2. The required battery storage could be either a large-scale centralised battery adjacent to a solar/PV farm, or many distributed batteries combined with household/business rooftop solar

3. It is possible to defer the need for a new line by 2-4 years if strong growth in solar and battery storage can be implemented over the next four years:

   a) for example, a 2-4 year deferral would require around 6,000 households to install 5kWs of solar and around 25kWhs of battery storage per household

   b) in addition, greater focus on peak demand management could offset the quantity of solar and battery storage required and/or create an additional 2-3 years of deferral, e.g. shifting the time of EV charging into the night or when solar is generating will slow peak demand growth

4. However, it is unlikely that a new transmission line into the Frankton/Queenstown region can be avoided altogether due to the scale of solar and battery storage required to deliver Queenstown’s growing energy requirements

5. Given the potential for high growth scenario to exceed the capacity limit within the next five years, it would be prudent to progress design and consenting of a new transmission line with urgency

6. Rooftop solar and battery storage will give other economic and resilience benefits for households and businesses in addition to the above transmission deferral benefits

Here is a copy of the independent report and the findings/recommendations.

VIEW REPORT

Rewiring Aotearoa has looked at the options and given us their feedback

“Rewiring commends Energising Queenstown for seeking to understand the role that solar and batteries can play in lowering infrastructure costs for the community. The analysis done by GCNC and ANSA shows that solar and battery systems could realistically defer the transmission line for 4 years at least.

”Given we know solar and batteries already make economic sense for many homes and businesses today, we can therefore conclude that solar and battery systems could save the community millions from line deferment alone, and save millions more on energy bills. Whether these batteries are individual household installations or large scale batteries, or both, the evidence is now clear to us that distributed energy will be the lower cost option for the first few years at a minimum.

”Solar and batteries would also add substantial resilience to the community, which is valuable in itself. This gives the region a significant opportunity to better protect itself from events like AF8, and become a recognisable leader in energy system innovation.

“Installing this scale of solar and batteries over the next 5 years will require effort and planning, it will be helped by easy access to energy financing, and education materials for the community. The Queenstown Electrification Accelerator stands ready to donate time to building this plan and helping the region lead the world with low bills and high resilience."