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Speaker 1: Transpower is warning that we urgently need more electricity generation

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Speaker 1: to come online as the gas is running out faster

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Speaker 1: than we expect it Now, according to modeling, there may

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Speaker 1: not be enough power in the grid to meet demand

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Speaker 1: next winter. James Kilty is Transpower's CEO and with us.

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Speaker 2: Hi, James, Hither, how are you?

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Speaker 1: I'm very well, thank you. Will we have blackouts next winter?

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Speaker 2: No, we won't. Hither. What we've released is something called

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Speaker 2: the Security of Supply Assessment. It looks ten years ahead

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Speaker 2: and tests the electricity system's ability to meet demand and

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Speaker 2: looking at three specific tests, and we do it every year.

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Speaker 2: It's roll and report this year. What it shows is

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Speaker 2: under two of the tests, things are actually improving, getting better,

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Speaker 2: and under one of them, the winter energy margin, which

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Speaker 2: you often hear talked about, things are getting a little

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Speaker 2: bit worse year on year. But the tests include a buffer,

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Speaker 2: so the fact that we're dipping slightly below the buffer

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Speaker 2: does not mean that there'll be a tricity supply shortages

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Speaker 2: next year.

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Speaker 1: Okay, what's going on with the electricity generation? Because I

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Speaker 1: thought everybody was sort of getting on with it.

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Speaker 2: That's absolutely the case. There's an enormous amount of investment

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Speaker 2: happening around the country as we speak. So over the

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Speaker 2: last first five years of this decade, in fact, about

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Speaker 2: ten percent more electricity generation has been invested in and delivered,

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Speaker 2: and the same looks to be happening again over the

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Speaker 2: next few years. The challenges in the background. Gas supplies

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Speaker 2: in the country have declined more quickly than expected, and

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Speaker 2: so there's a need for us to make sure we

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Speaker 2: keep the pedal down on new investment and new development

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Speaker 2: of electricity resources.

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Speaker 1: Yeah, I mean, it's been kind of a little bit

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Speaker 1: shocking how fast it's dropped off. Has it surprised you.

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Speaker 2: I think it's surprised most industry members and commentators around

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Speaker 2: the industry. It is a precipitous decline in gas supply

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Speaker 2: and availability into electricity generation. As I say that leving

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Speaker 2: of investment in the system right now is quite amazing.

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Speaker 2: There's enormous amounts of investment happening, new power generation being

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Speaker 2: developed all around the country and new batteries, importantly, new

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Speaker 2: batteries to support the system going forward.

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Speaker 1: Good stuff, James, thank you very much, appreciate your time.

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Speaker 1: James Kilty, Transpower CEO.

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