Onslow project on right track: minister

Lake Onslow earmarked for a power bank. PHOTO: ODT FILES
Lake Onslow. PHOTO: ODT FILES
Investigations into the Lake Onslow battery project are continuing and the scheme appears to be technically feasible.

Energy and Resources Minister Megan Woods recently gave an update to her Cabinet colleagues on the New Zealand Battery Project.

In a statement released earlier this week by the Ministry of Business, Innovation and Employment, Cabinet was told the project — effectively to use Lake Onslow as a "battery" when hydro-generation lakes are low — is on the right track.

The scheme appears technically feasible at this stage, although more work is needed.

This further work, including the geotechnical investigations under way in the Teviot Valley, will be done over the next few months to analyse potential construction, engineering, cost, timing and consenting, as well as integration with the electricity transmission system.

Early analysis also shows use of Lake Onslow could mitigate the dry-year problem and would support a pathway to a 100% renewable electricity system, away from a reliance on gas and coal-fired generation.

It could also help smooth wholesale prices, and reduce need to overbuild renewable generation to replace fossil-fuel generation.

But more work is required to incorporate environmental, cultural, social and geotechnical findings, and refine potential design options. This will give a good indication of development timelines and costs for a feasibility level decision.

The Lake Onslow feasibility study that is under way not only assesses the technical feasibility of such a scheme, but will also weigh up the environmental, cultural, social and commercial considerations.

Those undertaking the feasibility study will continue to work with mana whenua and engage with the community.

The NZ Battery Project has also been undertaking initial investigations into other battery options, including alternative technologies and other hydro options.

Of the range of alternative technologies, Cabinet confirmed the NZ Battery Project will narrow its focus from five to three non-hydro options for the remainder of phase one. They are flexible geothermal, hydrogen and biofuels.

The project team is also undertaking analysis to understand what impacts a pumped hydro scheme at Lake Onslow would have on the electricity system, prices and commercial incentives.

It is also working with Transpower to understand how it could connect to the grid.

The findings will be reported to Cabinet at the end of the year.

 

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