Developers have unveiled plans to build a 2-3GW high-voltage (HVDC) deep-sea cable linking Australia and New Zealand.
Taslink will build the first trans-Tasman HVDC cable to facilitate the two-way trade of surplus electricity between Australia and New Zealand – and is now seeking private investors to support the project.
The cable will be the deepest in the world, at just shy of 5000m, and will support the acceleration of renewable energy in both markets.
Taslink co-director Richard Homewood said: “Taslink provides a two-way street for both markets to maximise renewables, by trading between the two morning and evening peaks across both markets, and flattening peak electricity prices.
“Looking back towards last winter, as an example, had the cable been in operation last year, New Zealand would have experienced a very different winter.
“Independent analysis indicates that, even conservatively speaking, Taslink would have reduced $400m in power costs for New Zealanders – or a 23% reduction – in August alone.”
Homewood is the New Zealand director of Taslink, while John Telfer is the Australia director.
Together, they have over two decades of experience in renewable energy and utility-scale infrastructure across both markets.
The announcement signals the trans-Tasman project’s official invitation to global private investors to submit expressions of interest for the project’s second round of capital raising. The first round was raised privately.
The project is not proactively requesting public funding, though the option remains open for governments to have future involvement.
Homewood added: “For projects of this scale – especially critical energy infrastructure with a lifespan of 50-80 years – confidence about non-governmental commercial feasibility is king.
“While future governments, over the lifetime of the asset, may choose to have a financial stake in Taslink – and there is room for that to happen – that cannot be the starting point.”
The project estimate sits at NZ$12bn, with the second-round capital raise targeting funding for product development.
A third round will focus on capital expenditure.