Private home microgrids prove more cost-effective than poles, wires in New Zealand

LinkedIn
Twitter
Reddit
Facebook
Email
One of the deployed systems with SimpliPhi battery portion highlighted. Image: SimpliPhi.

One of New Zealand’s main gas and electric distribution companies has turned to distributed energy storage systems as a cost-effective alternative to long-distance wires and related infrastructure.

Powerco, operating in a 39,000 km2 service area on New Zealand’s North Island, maintaining electricity supplies for over 300,000 people, is constructing a number of “all-in-one” microgrid-style offerings in remote parts of the country, called “Base Power” systems.

Base Power installations combine solar, typically on customer rooftops, with energy storage batteries and a diesel generator for backup. Powerco calls it “urban quality power…in the most remote of locations”. Powerco said it has found Base Power installations to be more cost-effective than upgrading the network to improve supply with traditional overhead wires and power management or conversion infrastructure.

Powerco has approved 20 initial units to be delivered by helicopter to the remote locations, having trialled the all-in-one solutions for “several years”. They will be deployed over the next 12 months by local company The Downs Group, which will be responsible for ongoing maintenance, in addition to full installation and assembly duties.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

For the energy storage portion of the projects, Powerco has ordered 3.4kWh lithium batteries from SimpliPhi Power. The US manufacturer has a long background in off-grid power, having begun life offering energy solutions to on-location filming for movies and tv. SimpliPhi claims its non-toxic lithium ferro phosphate battery chemistry eliminates the risk of thermal runaway, where some cobalt-based lithium batteries can present a fire hazard.

“Powerco deserves praise for their disciplined approach to developing an economic model that demonstrated unequivocally the cost effectiveness and reliability of distributed power assets at the fringes of the grid,” SimpliPhi CEO Catherine Von Berg said.

“The utility calculated that off-grid distributed and renewable assets combined with storage is more cost effective than extending the reach of the grid by two kilometers, or having to repair the transmission lines of approximately 20 poles. Add to that calculus the environmental benefits of replacing centralised fossil fuel generation and suddenly the cost benefit analysis overwhelmingly supports the Base Power off-grid units – creating a win-win with better energy security for both the utility and their customers”.

8 September 2026
Barcelona, Spain
Battery & Energy Storage Tech Europe (BESTE) is Europe’s industrial scaling platform for stationary and industrial battery applications — not EVs. Taking place 8–9 September 2026 at Fira de Barcelona, BESTE brings together utilities, IPPs, energy-intensive industries, data centres, ports, rail, maritime, defence and aerospace OEMs — all deploying or integrating battery storage at scale. Over 100 companies already confirmed — including EDP Renewables, Acciona, Endesa, Naturgy, Neoen, Galp, Basquevolt and Veolia — alongside 40+ expert speakers and international institutional support from BEPA, BVES, LDES and Volta Foundation. Where Europe’s battery & ES ecosystem turns projects into reality.
15 September 2026
San Diego, USA
You can expect to meet and network with all the key industry players again in 2025 from major US asset owners, operators, RTOs and ISOs, optimizers, software and analytics providers, technical consultancies, O&M technology providers and more.

Read Next

July 20, 2026
Australia’s NEM connected 9.1GW of new generation and energy storage to full output in FY26, more than double the result achieved in FY25.
July 19, 2026
Australian Prime Minister Anthony Albanese has said that large-scale data centres will be legally required to put at least as much energy into the grid as they draw from it, and that this supply must be renewable energy.
July 17, 2026
Battery energy storage systems (BESS) operating in California’s grid left approximately US$98 million on the table due to suboptimal bidding strategies, according to a new analysis from Gridmatic.
July 17, 2026
Zinc hybrid cathode battery and storage system maker Eos Energy Enterprises has announced a strategic partnership with the US Department of Defense (DoD) to “enhance the resilience of national defence infrastructure.”
July 17, 2026
The Port of Newcastle has become the first port in New South Wales, Australia, to be approved to safely store grid-scale lithium-ion battery storage systems.