Plans have been revealed to construct a 2-3GW high-voltage direct current (HVDC) deep-sea cable connecting Australia and New Zealand, aimed at facilitating the two-way exchange of surplus electricity between the two countries. The cable, named Taslink, will be the deepest in the world, reaching just under 5000 meters, and is expected to play a key role in accelerating renewable energy integration in both markets.
Taslink, led by directors Richard Homewood in New Zealand and John Telfer in Australia, aims to provide a vital infrastructure link for renewable energy trade across the Tasman Sea. The project is now actively seeking private investors to support the second round of capital raising after a successful first round of private funding.
“This cable provides a two-way street for both markets to maximize renewables, by trading between the two morning and evening peaks across both markets, and flattening peak electricity prices,” Homewood said. He added that the cable could have made a significant impact during last year’s winter, highlighting a scenario in which New Zealand could have saved up to $400 million in power costs. “Independent analysis indicates that, even conservatively speaking, Taslink would have reduced $400 million in power costs for New Zealanders—or a 23% reduction—in August alone.”
Taslink’s developers emphasize the project’s long-term value, with an estimated lifespan of 50-80 years. “For projects of this scale—especially critical energy infrastructure—confidence about non-governmental commercial feasibility is king,” Homewood explained. While the project is not currently seeking public funding, he acknowledged that future government involvement could still be considered. “While future governments, over the lifetime of the asset, may choose to have a financial stake in Taslink, that cannot be the starting point.”
With an estimated cost of NZ$12 billion, the Taslink project is now in its second phase of capital raising, focusing on funding product development. A third round of funding will target capital expenditures for the cable’s construction.
The trans-Tasman HVDC cable aims to not only enhance energy security but also support the growth of renewable energy sources in both Australia and New Zealand, which are committed to reducing emissions and expanding their clean energy capacity. The project’s successful completion is expected to provide significant economic and environmental benefits to both countries.
