New Zealand Power Grid Upgrade Delayed by Pandemic
May 03 2020 - 5:44PM
Dow Jones News
WELLINGTON, New Zealand--An upgrade to New Zealand's power grid
is suffering delays because of the coronavirus pandemic and funding
constraints.
Transpower, which manages New Zealand's electricity grid, faces
pandemic issues including in its international supply chain,
according to one of its partners in the work, hydro-power company
Meridian Energy Ltd.
Meridian is also unwilling to make a further funding commitment
for the 110 million New Zealand dollar ($66.6 million) upgrade, it
said on Monday. The targeted completion date of June 2022 "may no
longer be achievable," Meridian said.
The Clutha-Upper Waitaki upgrade was restarted in December, part
of an effort to guard against disruption from the possible closure
of New Zealand's only aluminum smelter.
It would strengthen the power grid to move more hydroelectric
generation in the lower South Island to the North Island if the
Tiwai Point smelter closes or curtails its operations. The
smelter's owner Rio Tinto is reviewing its future.
Meridian and Contact Energy Ltd. in December said they would
jointly contribute NZ$10 million to the work.
Write to Stephen Wright at stephen.wright@wsj.com
(END) Dow Jones Newswires
May 03, 2020 17:29 ET (21:29 GMT)
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