The flexible edge: Powerco's approach to industrial decarbonisation

As Aotearoa transitions towards a low-carbon future, electrifying industry has become a key part of the transition. That’s because industrial processes, like heating, pumping and manufacturing, are a major source of emissions as they tend to use carbon-emitting fuels. However, this pathway places significant pressure on the electricity network. That’s where smarter planning and more flexible solutions come in. At Powerco, our role is to make sure the network can handle growing demand, while keeping energy reliable and affordable for everyone. 

Why electricity demand is growing

In the future, we expect to see strong demand growth and some of the key drivers include: 

• An increase of connection requests to the network 
• High uptake of electric vehicles 
• Replacing fossil fuels with electricity for process heat 
• Customers switching from carbon-producing fuels to renewable electricity. 
  
  

Our evolving toolkit

In the past, meeting new demand often meant building new infrastructure, which can be expensive and time consuming. Now, we’re taking a smarter approach. 

We’re modernising the network and using new tools to get the most out of existing assets. This means we can deliver quicker, more cost-effective outcomes for our customers and avoid unnecessary upgrades. 

Some of the tools we’re using include: 

• Seasonal asset ratings: Understanding how demand changes with the seasons. 
• After diversity maximum demand: Looking at how customers actually use electricity. 
• False peak filtering: Avoiding overestimating demand based on short-term spikes. 
• Partial load contribution modelling: Accurately assessing the real impact of new connections.
• Time-series demand analysis: To track behavioural patterns over time (half-hourly data). 

Together these tools help us plan better, forecast more accurately, and connect customers faster.

What this means for our customers

Not all new connections increase peak demand. With the insights from the planning tools (above), we can often accept more connections, especially when customers are willing to be flexible about when and how they use electricity. 

Powerco is also moving beyond the role of a traditional network operator to a distribution system operator (DSO). This means we’re focused not only on delivering electricity, but on enabling smarter energy use, more customer choice, and new technologies such as demand response and battery energy storage. 

The transition to a DSO means engaging early with customers on their future energy needs, making the most of existing infrastructure before building new, and creating a platform for smarter energy decisions and services. 

What’s next 

We’ll continue to refine our tools and methodologies, build flexibility adoption into our planning principles, and support the electrification of industry across the regions we serve. Our goal is to help customers decarbonise, keep costs under control, and ensure communities have access to reliable, affordable energy, now and in the future. 

In conclusion, electrifying industry is a key step toward reaching climate goals. It’s not just about using more electricity, it's about using it smarter. By combining flexible planning methodologies, tools, and early engagement Powerco is contributing to building a more efficient, sustainable and affordable energy future.