Electricity Asset Management Plan 2019-2029
12 Vector Limited://
MEGA TRENDS: OUR OPERATING ENVIRONMENT IS CHANGING There are powerful forces shaping the energy sector, both here in New Zealand and around the globe. Enveloped in continuous change, planning long-term network investments is more challenging than ever before. Auckland is changing under the forces of urbanisation. More than a third of New Zealanders now call Auckland home. It produces 38% of the country’s gross domestic product 3 and also happens to be one of the fastest growing cities globally. We’re seeing an increase in customer density in the older parts of the network and new demand for electricity at the fringes. Once sparsely populated rural areas are becoming increasingly popular areas to live in as a lifestyle choice. There is an insatiable appetite for new housing, which will almost certainly continue over the next decade, as will associated growth in infrastructure building, such as the City Rail Link. Auckland’s growth is unprecedented and it is putting pressure on our network at almost every turn, so managing the dynamic demands of this will continue to be a key responsibility for Vector.
In the coming decade, the energy system as we know it will be impacted further as the energy and transport sectors converge, advances in network and digital technologies continue at pace, and as we seek to decarbonise our economy. Already our customers expect more personalisation, choice and participation when it comes to their energy needs, and they expect us to innovate and adapt quickly to meet their expectations. New technologies are having a monumental impact on customer preferences and our network, and it will continue to play a key role in delivering for our customers. There are also the undeniable impacts of climate change making network resilience and sustainability more of an imperative in everything we do. As we plan, we must mitigate and adapt to the physical impacts of climate change as well as the economic impacts associated with decarbonising the economy. These and other macro trends will continue to influence and disrupt our operating environment over the time- frame of this AMP. In this section, we consider the key trends in detail. We assess their implications for our network and outline our intention to respond with the best possible mix of strategies and plans.
Last year Vector added 11,135 new properties to its power-line network, a 22 per cent increase compared with the previous year, and the biggest leap in growth in Vector’s history.
THE GLOBAL RISK OUTLOOK FOR 2019
Types of Risks:
Environmental
Geopolitical
Societal
Technological
Economic
TOP 5 GLOBAL RISKS IN TERMS OF IMPACT
TOP 5 GLOBAL RISKS IN TERMS OF LIKELIHOOD
1
1
Weapons of mass destruction
Extreme weather events
2 Failure of climate-change mitigation and adaption 3 Extreme weather events 4 Water crises 5 Natural disasters
2 Failure of climate-change mitigation and adaption 3 Natural disasters 4 Data fraud or theft 5 Cyber-attacks
Figure 1-1 Global Risk Outlook for 2019 from the World Economic Forum. Interestingly, this risk outlook aligns with the key trends creating the most impact for us, our network and our customers
3. https://www.aucklandnz.com/business-and-investment/economy-and-sectors
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