Prysmian signs $260m deal to install new submarine power connection across Cook Strait, New Zealand

Italy's Prysmian said on Friday it signed a capacity reservation agreement with Transpower New Zealand, the country's national grid operator, worth around 250 million euros ($261.73 million).

Under the agreement, the Italian cable maker will install a new submarine interconnection across the Cook Strait with an overall capacity of up to 1,400 MW, replacing existing infrastructure nearing the end of its operational life.

This will provide "significant benefits to the country, ensuring reliable and cost-effective electricity supply, while supporting the increasing electricity demand in New Zealand," Prysmian said in a statement.

The contract is expected to be finalised in the first quarter of 2026 with a notice to proceed expected by June of that year, and commissioning planned in 2031, the statement added.

Prysmian noted that two-way power links are crucial for New Zealand, especially when hydroelectric generation in the south suffers due to dry weather conditions, as in 2024. The island country has no power connections with other countries, it noted.

(Reporting by Philippe Leroy Beaulieu, editing by Alvise Armellini)