Vital signs 11-year partnership agreement with Transpower

5 December 2024

Vital signs 11-year partnership agreement with Transpower


Win further strengthens Vital’s position in the critical electricity sector and is estimated, when fully built, to deliver high single-digit percent growth to current EBITDA


Vital Limited (NZX: VTL) has signed a decade-long operational partnership with national grid operator Transpower to provide it with Radio Relay Links (RRL) as part of a significant capital investment to refresh its TransGO network. This network is one of Aotearoa New Zealand’s largest private telecommunications networks. It uses buried optical fibre augmented by microwave radio to provide communications between all Transpower’s substations and sites from Tiwai Point to Kaikohe.

Vital Chief Executive, Jason Bull, welcomed the significant development, “We are delighted to partner with Transpower to support the vital role they play for New Zealand. This is further evidence of Vital’s growing strength in national utilities, with current long-term partnerships in place with Powerco, Unison and Wellington Electricity, in addition to recent but smaller scale, new project work secured with Lodestone Solar Farms, Meridian Energy, and Horizon Energy.

“Vital today plays an increasingly integral role as a provider of critical communication services to New Zealand's electricity market, offering radio and telecommunications solutions that ensure the industry remains reliably connected and safe – as demonstrated during Cyclone Gabrielle.

“Within our operating environment we see scope to keep building our existing revenue base where our team continues to consistently deliver for customers, which in turn is encouraging their confidence and appetite to partner with Vital.

“Vital’s strong position in the electricity sector is driven by our commitment to high-quality, specialised field services partnerships and professional engineering capabilities that address the unique demands of critical infrastructure. As demand grows for robust, always-on communication, our role expands, providing solutions to power generators, the national transmission company, and distribution networks alike.”

Transpower’s TransGO network will use Vital’s RRL to provide non-fibre connectivity to Transpower’s critical infrastructure. The Vital solution includes strict timing and design specifications to meet the growing requirements of Transpower’s network today and into the future and will integrate into the TransGO network refresh work programme, led by Spark with its technology partner Nokia.

Transpower’s Executive General Manager Information Services and Technology, Cobus Nel, says, “TransGO is a critical part of our national electricity transmission network that keeps the lights on for homes and businesses across Aotearoa New Zealand. We are looking forward to partnering with Vital to ensure our network remains reliable and continues to meet the evolving needs of electricity users across the motu.”

Vital will design, build, maintain and manage over 26 digital microwave links supporting Transpower’s tele-protection signalling and other critical services between substations and other Transpower sites. Vital will use Aviat and NEC’s industry leading microwave networking equipment to meet the technology requirements and will partner with Ventia to deliver the services throughout New Zealand.

Bull said: “Vital’s turnaround strategy, commenced two years ago, was designed to arrest the previous decline in key customers, stabilise the business, significantly improve operational efficiency and reduce costs, build better sales channels, improve the customer experience, and win or re-sign more key customers. This significant new customer win is in line with this strategy, and once built, is estimated to deliver high single-digit percent growth to current EBITDA.”


Jason Bull
CEO

For media enquiries please contact:
Richard Llewellyn on [email protected] or 027 5232362


ENDS

About Vital’s energy and utility capabilities:

Vital delivers tailored communication services to meet the stringent requirements of New Zealand's power generation, transmission, and distribution sectors, helping to keep the nation's lights on. With a comprehensive portfolio of services that includes land mobile radio, microwave linking, and 24/7 Network Operations Centre (NOC) support, we enable seamless, dependable communication across the power grid. This resilience is essential for minimising downtime, responding swiftly to incidents, and enhancing coordination across geographically dispersed teams.

Vital's expert teams offer end-to-end support, from installing and maintaining communication links to delivering the essential expertise required for the industry’s specific needs. With a dedicated focus on safety and connectivity, Vital is committed to enhancing operational reliability within New Zealand's energy landscape.

About Transpower:

Transpower is a state-owned enterprise with a dual role. It owns and operates Aotearoa New Zealand’s national high voltage electricity transmission grid that transports electricity from where it is generated to cities and towns across the country as well directly to some major industrial users. In its system operator role, Transpower is also responsible for managing the real-time power system and operating the wholesale electricity market.

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Announcement PDF