Chapter 6: Positive Environmental Effects
452. The Board has, subject to Part 2, to consider the effects on the environment of the designation,1 and of the resource consents. By the RMA, the meaning given to the term effect includes any positive effect.2
453. In the RMA, the meaning of environment includes—
- (a) Ecosystems and their constituent parts, including people and communities; and
- (b) All natural and physical resources; and
- (c) Amenity values; and
- (d) The social, economic, aesthetic, and cultural conditions which affect the matters stated in paragraphs (a) to (c) of this definition or which are affected by those matters.3
454. This chapter addresses Transpower’s submission that the Grid Upgrade Project would have positive effects on the environment.
Transpower’s contentions
455. Transpower contended that the upgrade project would have positive environmental effects in these respects:
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a) it represents long-term planning, reflecting that electricity transmission assets typically have lives exceeding 50 years
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b) the route largely uses an existing transmission corridor, rather than establishing a new greenfields corridor, or multiple lines
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c) the upgrade would replace older assets of smaller capacity with new assets of higher capacity and greater reliability
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d) the upgrade would promote renewable generation by facilitating transmission of electrical energy from renewable sources to the major market
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e) the upgrade would make up a predicted deficiency of reliable supply of electrical energy to the upper North Island (and particularly the Auckland area) at times of peak demand.
Submitters’ contentions
456. A number of submitters in support of the Grid Upgrade Project identified the positive environmental effects.
457. Genesis Energy submitted the Environment Court has identified that:
Electricity is a vital resource for New Zealand. There can be no sustainable management of natural and physical resources without energy, of which electricity is a major component.4
458. Genesis Energy also submitted that the upgrade project is consistent with maintaining and enhancing the regional infrastructure and physical resources in the interests of supporting the regions’ economies and social and community well-being as set out in the Auckland and WRPSs.
459. Vector submitted that:
The North Island Upgrade Project will facilitate secure and efficient connections to existing transmission, distribution and generation infrastructure. It will maintain the required minimum level of supply security as demand continues to grow, and, in so doing, satisfy current grid reliability standards which provide flexibility to address future changes in supply.
460. Vector’s submission continued:
Any partial or total losses of supply to the Auckland or North Isthmus regions would impose significant economic costs to the New Zealand economy as a whole.... As a consequence, the North Island Upgrade Project encourages business confidence, and promotes social, economic and cultural well-being.
461. Enterprise Northland’s submission referred to the proposed grid upgrade as a strategic investment that underpins New Zealand’s economic growth and that provides long-term confidence to business investors that the necessary infrastructure is in place to provide a reliable electricity supply.
462. The New Zealand Council for Infrastructure Development submitted that providing certainty on the grid upgrade path is critical to delivering the Government’s draft energy strategy which relies on a robust transmission grid to distribute renewable hydro, geothermal and wind-generation capacity to market. Final determination of the upgrade path will encourage generation investment decisions, and will boost business and investment confidence generally. In addition, the capability of upgrading the grid over time to a 400‑kV voltage, provides an opportunity to replace lower capacity lines, but 220‑kV development does not.
463. The New Zealand Wind Energy Association submitted that the upgrade project will free up capacity of the existing 110- and 220-kV circuits in the Waikato and South Auckland regions, enabling the connection of new generation projects including renewable wind generation. The Association asserted that this would increase both the diversity and security of energy supply for the region and, in doing so, promote the region’s social, economic and cultural well-being.
464. Submitters in opposition did not necessarily specifically submit on positive environmental effects but focussed on issues that were associated with adverse environmental effects.
465. In her submission, Dr L Bennet recognised there is a need for a grid upgrade, while raising issues with the proposed grid upgrade. She acknowledged a need to improve New Zealand’s transmission infrastructure and, in particular, that upgrades to this section of the National Grid are reasonably necessary for its efficient operation.
466. Dr Bennet’s submission then raised a number of issues in relation to the proposed grid upgrade. She stated that the reason for the submission is that the proposal:
Will not promote the sustainable management of natural and physical resources and will otherwise be contrary to the purpose and principles of the Act.
Will not promote or enable the social, economic and cultural well-being of those communities in the Auckland and Waikato regions that will be directly and adversely affected by the proposed works.
Evidence
467. In his evidence, Mr George explained that investment in the transmission grid would facilitate a number of benefits including the continuation and improvement of electricity supply, facilitating the connection of new generation, economic growth and business confidence.
468. Mr Boyle gave evidence that two sections of the GPS 5 in particular had a significant influence on the selection of the proposed grid upgrade. One of these two sections is:
88E: To the extent the (Electricity) Commission considers the environmental effects of new lines proposed by Transpower in a grid upgrade plan, it should also take into account any longer-term benefits that larger capacity lines may provide by avoiding multiple smaller lines.
469. He later stated that:
one of the objectives is to maximise the use of the existing and new transmission assets and transmission corridors to help defer the construction of additional new transmission lines, and ultimately minimise the number of transmission lines into the Auckland area.
... the 400-kV solution that will maximise the use of the transmission corridors, will require less new transmission lines than the alternatives; and ultimately will be the option that will result in the lowest overall number of transmission lines. The smaller number of new lines and smaller number of overall lines is the key environmental advantage of the 400-kV line.
470. Mr Boyle asserted that the grid upgrade would achieve levels of grid security and reliability in the upper North Island that would maintain business and investor confidence in the region. He gave his opinion that the latent capacity of the upgrade to meet projected demand for many years to come should engender business confidence.
471. Ms Allan, in her evidence, quoted from section 2 of the ARPS that:
A reliable power supply is essential to the social and economic well-being of the region. Currently, there is limited power generated in the Auckland region, relative to demand. The region is, therefore, dependent upon power supply from other regions.
472. She contended that the overall operational effects of the overhead line, as part of a major project designed to ensure security and reliability of supply to an area where demand is growing, are strongly beneficial.
473. Ms Allan further contended that the removal of the ARI-PAK A line is the main beneficial effect of the construction phase of the upgrade project and that there are other benefits such as job creation and economic impacts for local businesses, along with skill development.
474. Cross-examination of Ms Allan by Mr H M Seales included the following:
Seales: Beneficial effects, you state that it is needed ‘to meet needs of people in the northern part of the North Island over the next few decades’. Is it a fact that the line isn’t expected to be up and running at 400 until 2034, and that it’s expected to meet the needs for Aucklanders over the next few decades? At the end of two or three decades that implies that it may not be necessary, do you think there could be another source of power in the next 30 years?
Allan: I can’t speculate on that. That...my comment is based on the...Transpower’s projection of needs, and at the moment I don’t think Transpower has indicated how long the 400kV operation is likely to meet needs before some other solution is needed. It’s in...it’s...I think I could say it’s beyond the reasonable...the reasonably foreseeable planning horizon. So, we’re probably talking about 50 years plus.6
475. Mr T J Densem, a professional engineer employed by Mighty River Power, deposed that renewable sources tend to be located away from main load centres; and if renewable generation is to make up a larger proportion of total generation, then there is likely to be a shift in generation sources. He gave examples of geothermal generation in the Bay of Plenty and Taupo regions, and of wind and small hydro projects south of Taupo.
476. Mr R G Wilson (Manager of the Electricity Group, Ministry of Economic Development) contended that the benefits of the upgrade project would be national in their effect by enhancing security of supply and enabling the increased use of renewable energy. He stated that the upgrade will primarily serve Auckland and North Auckland, which comprise a very significant proportion of total economic activity in New Zealand and that the grid upgrade proposal is nationally important because any increase in the risk, actual or perceived, of interruptions in electricity supply to this region would have an impact on the whole New Zealand economy.
477. Mr Wilson also stated that much of the existing transmission system was developed around 40 years ago. He said that demand has continued to increase since then, particularly in the Auckland region, but relatively little investment has occurred in upgrading the capacity of the network and that we are now in a period where a major upgrade is necessary, to position the country for the coming decades.
478. His evidence on renewable energy included:
…renewable energy sources are generally located far away from the main centres of demand, particularly Auckland. The transmission proposal would facilitate greater use of generation from renewables required to satisfy demand while, at the same time, reducing New Zealand’s dependence on non-renewable energy sources, by ensuring that energy can be delivered to where it is needed.
479. And later, Mr Wilson contended:
The grid upgrade will encourage the greater use of renewables, which will break down a barrier that might prevent low-emissions technologies from being more widely used...
Greater use of renewable energy resources that have low emissions of greenhouse gases is a key government priority for reducing the climate change impacts of energy use.
480. He also gave his opinion that new transmission lines are likely to be a low-cost option, which would ensure that electricity prices remain as low as possible and that the upgrade project has been determined to be the most economically efficient option to ensure electricity supply to the upper North Island.
Consideration of positive environmental benefits
481. The Board has reviewed all the evidence and submissions on positive environmental effects.
482. The Board recognises that a number of submissions in opposition to the Grid Upgrade Project have raised issues related to adverse environmental effects, but did not dispute that the project would have positive environmental effects.
483. The Board notes that a positive environmental effect of selecting a route, then defining the land to be subject to a notice of requirement, is of benefit to those communities, landowners and occupiers within the corridor who, given the choice of route, will no longer be adversely affected.
484. The Board accepts the evidence of Ms Allan and Messrs Boyle, Densem, George and Wilson in relation to the positive environmental effects of the proposed 400-kV-capable grid upgrade, and accepts the submissions about its positive environmental benefits.
Endnotes
