AWARDS FINALIST: PowerNet – Leading decarbonisation and electrification efforts in the south

PowerNet’s Partners in Decarbonisation programme has helped Southland industry and the region’s energy providers develop plans to manage the transition to cleaner fuels over the coming decade. 

The work, begun in 2021, has underpinned a pipeline of six electrification projects across a range of sectors which, by the end of next year, will have reduced annual emissions by more than 112,000 tonnes a year. 

It has also flowed into other regional initiatives, including the 2022 Regional Energy Transition Accelerator work by the Energy Efficiency & Conservation Authority and the Murihiku Southland Electrification Development Plan – a first-of-its-kind study by PowerNet and Transpower. 

In 2021, PowerNet hired Deta Consulting to help prepare a stocktake of Southland’s major process heat plants and the decarbonisation and electrification aspirations of their owners. 

The work, part-funded by Transpower and EECA, was aimed at identifying sites with more than 500 kW of boiler capacity within the company’s network areas. 

Major customers 

The study focused on 44 major customers across various sectors, including meat, dairy, education and hospitality, most of them reliant on coal. 

Their sites produced about 321,500 tonnes of carbon dioxide from a combined 430 MW of heat production capacity, making them responsible for about 10 per cent of the country’s manufacturing emissions and just over 1 per cent of total greenhouse gas emissions. 

PowerNet says transitioning those sites to electricity or biomass could reduce their emissions to 65,500 tonnes by 2030. That would make the PowerNet network area one of the most decarbonised regions in New Zealand.  

PowerNet's efforts have already led to several successful decarbonisation projects. 

Mataura Valley Milk’s 20 MW electrode boiler was commissioned in December and will reduce emissions by 22,000 tonnes of CO2 a year.  

A 30 MW electrode boiler and three high-temperature heat pumps planned for Open Country Dairy’s Awarua site will cut annual emissions by 41,110 tonnes of CO2.  

A 16 MW electrode boiler planned for the Alliance Lorneville plant is expected to reduce emissions by 11,730 tonnes of CO2.  

Tailored solutions 

In addition to these projects, PowerNet has modified its internal processes to better work with major customers as they decarbonise. This includes providing innovative technical and economic solutions tailored to each customer's needs.  

The PowerNet-managed networks have developed new customer contribution policies that allow customers to contribute up to 50 per cent of upfront capital investment requirements. This policy significantly reduces annual line charges, making decarbonisation projects more financially viable for customers.  

PowerNet has also helped customers access funds through the former Government Investment in Decarbonising Industry initiative. Through regular engagement and support with funding applications, Southland secured more than $36 million in EECA co-investment across 11 electrification projects.  

PowerNet's initiatives have not only benefited its customers but have also set a template for decarbonisation efforts across the country. 

Its work with EECA and Transpower has fostered lasting relationships with major customers, local communities, industry stakeholders, and government bodies. 

These collaborations have enabled PowerNet to assist other industries in their decarbonisation efforts, providing valuable advice and technical solutions. 

The Low Carbon Future Award category is sponsored by Energy Resources Aotearoa.