Transpower - Assignment Example

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Transpower

This analysis comes in the wake of an announcement from the New Zealand government, for instance, that there had been an allocation in the amount of $4.6 billion for the upgrading of the national power grid over the course of the next ten years, beginning in 2012, with the key purpose of the investments being the modernization of the grid and the setting up of infrastructure to ready the country for future increases in power consumption and demand. This fund is also earmarked to likewise improve reliability of power supply to consumers, both industrial and residential. On the other hand, the investment plan also takes a shot at the current state of generation and transmission in New Zealand, where generation facilities are centralized, and necessitate the kind of transmission infrastructure investments that could be limited and reduced by investing more in distributed generation moving forward. The idea is that transmission investments are not etched in stone as necessary, if generation is distributed, and if such facilities are located close to the demand. Where this becomes a reality, then there is a reduced need to build large generation facilities and the necessary transmission infrastructure needed to pipe the power to the consumers (Sustainable Energy Association, 2012). ...Show more

Summary

This paper examines the decision of Transpower to make major investments in the national grid. The analysis and examination will be done in the context of the need for such an investment; the implications of the investment in terms of funding, as well as the cost of the investment;…
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