A new company has been appointed to manage Stewart Island's electricity network for the next year, as the region moves toward a more modern and sustainable power system.

NZ Energy has been awarded a short-term contract to manage the Stewart Island Electricity Supply Authority (SIESA), which oversees the generation and distribution of electricity to the island. The contract will last for one year while a solar farm is constructed as part of the Rakiura energy solutions project.

Southland District Council chief executive Cameron McIntosh said the temporary contract ensures there is enough time to find a suitable long-term partner to take over once the solar generation system is in place.

“The contract with PowerNet had reached the end of its term and with the upcoming changes from the Rakiura energy solutions project and the likely different requirements, the future operations and maintenance contract will change. As a result of that, Council went to market for a short-term provider,” Mr McIntosh said.

“We thank PowerNet for its service to the island for the past 15 years,” he said.

PowerNet chief executive Paul Blue said PowerNet has been proud to support the Stewart Island community and manage SIESA on behalf of the Southland District Council for more than 15 years.

“We respect the Council’s decision following its procurement process, and our focus now is on ensuring a seamless transition to the new provider. We’ll work closely with the council and incoming team to support continuity of safe, efficient, and reliable electricity supply for the residents and businesses on Rakiura.”

SIESA is owned and operated by Southland District Council on behalf of Stewart Island electricity consumers and is governed by the Stewart Island Rakiura Community Board.

At present, SIESA’s power supply relies on five diesel generators housed at a central station. Power is distributed to over 400 customers through a network of 52 kilometres of overhead and underground circuits and 43 distribution transformers.

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