LFP battery system project financing options in New Zealand 2026

What is the NZ battery project?

The NZ Battery Project also seeks to ensure energy using businesses can continue to rely on the electricity system to support continued business and industrial operations. Failure to solve the dry year problem in a 100% renewable electricity system will result in shortages and price volatility with economic costs for electricity-using businesses.

How many technology options are there in the NZ battery project?

A longlist of 28 different technology options was identified early in the NZ Battery Project by the NZ Battery Project team and MBIE Energy Markets policy team. The list was peer reviewed by the NZ Battery Technical Reference Group and Arup Ltd, and further considered by WSP Ltd.

Is the Portfolio option a good option for the NZ battery project?

The MCA identifies the Portfolio option as narrowly ahead of Lake Onslow as the option that best meets the competing objectives of the NZ Battery Project. The Portfolio option has a range of positive elements that make it an attractive option in theory.

How will future decisions affect the NZ battery business case?

Future decisions made within the New Zealand Energy Strategy, Gas Transition Plan, Hydrogen Roadmap, action plan for decarbonising industry, transport decarbonisation, and Electricity Authority market development workstreams may impact the NZ Battery business case and investment, and vice-versa.

What if the funding requirements for the NZ battery investment are too high?

If the funding requirements for the NZ Battery investment are much greater than anticipated, there may be increased cost burdens for the Crown or electricity consumers. The Indicative Business Case is informed by the current best available cost information, but this will continue to be updated as improved design information becomes available.

Why is the NZ battery investment proposal a high risk project?

The NZ Battery investment proposal is high risk, due to the scope, scale, and complexity of the project. An appropriate reporting and assurance approach is needed to provide assurance that the project is on track to deliver the intended outcomes. The approach to assurance for the project is outlined in Table 51.