The money will come from the Regional Infrastructure Fund and the investigation will be done by the Ministry of Business, Innovation and Employment (MBIE).
Jones, who is also associate energy minister, described Northland’s current electricity infrastructure as “creaking” from historic under-investment and said the pylon collapse was a catastrophe.
New Zealand as a whole needs significantly more electricity generation, as the economy grows and demand for power increases, he said.
Regional Development Minister Shane Jones said if feasible, the energy bridge could unlock up to $1 billion in renewable energy generation. Photo / NZME
“Northland is rich in natural renewable resources, such as wind and solar, which are suitable for generating renewable energy.”
Jones said more detailed work needs to be done into the feasibility of expanding Northland’s power generation before further Government funding could be considered.
He expected the cost would be more than $100m, taking up a large chunk of the $1.2b Regional Infrastructure Fund.
But Jones believed if the outcome is positive, the payoff could be massive, not only for Northland but for the increasingly power-hungry Auckland, which would be more expensive to power from the south.
Regional Development Minister Shane Jones, centre, made the $2m investigation announcement at the Northland Joint Regional Economic Development Committee on Tuesday. Photo / Denise Piper
“This project has the potential to unlock $1 billion of private investment in new renewable energy. If this is feasible, Northland could become a significant electricity generator and supplier of power, which might have flow-on benefits for Auckland and the rest of the country,” Jones said.
“This investment could increase electricity self-sufficiency in the region and improve the power generation capacity and resilience of the Northland network which will benefit local people. It could also reduce power prices for Auckland and nationally if wholesale prices can be brought down," he said.
“This is a long-term project and there is a lot of water to pass under the bridge yet, but if it goes ahead some new power generation could come online as components are completed, with full commissioning by 2029.”
Jones said it is important for the country to have energy that is secure, affordable and sustainable, although security and affordability are more important to him than sustainability.
Northland leaders, who campaigned for better energy resilience for the region, were pleased with the announcement.
Whangārei deputy mayor Phil Halse said it showed the power of Northland working together and speaking with one voice.
Kaipara mayor Craig Jepson said the announcement was very exciting, particularly as it focused on the infrastructure on the west coast, such as near Dargaville.
“We can’t have an economy without good resilience in our power supplies, as we’ve seen in the past. It opens up opportunities for Dargaville particularly.”
The increased power infrastructure will allow more industry in Kaipara, which the council is pushing for with its district plan, he said.
Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.
