Market to enable renewables - archive
In the future it is likely that widespread collective international concerns about the possible effects of global warming will result in the cost of carbon dioxide emission being reflected in thermal fuel costs. If these carbon costs increase over time then investment in higher levels of renewable generation will be economically efficient and a potential outcome of this is that by 2020 over 90% of energy generation in New Zealand would be provided from renewable sources.
Because renewable generation is often remote from existing load and major transmission lines and development timing differences can exist between renewable generation assets and transmission, some generators might be deterred from investing in renewable plants.
In order to facilitate the coordination of renewable and transmission investment, the Commission initiated the “transmission to enable renewable” project (TTER Project) to:
- enable participants to better understand how the current framework (part F of the Electricity Governance Rules 2003 (rules)) can be utilise to support for the integration of renewables; and
- provide an up to date “map” of renewables location and sizes which would feed in the next Statement of Opportunities (SOO) and be used by Transpower in its next Annual Planning report (APR).
The first step of this TTER project consisted of constructing a 'resource map' of possible wind, hydroelectric, and geothermal generation. In order to ensure that the information collected was accurate, the Commission contacted generators that held useful information on this.
The TTER project also sought to identify whether there are likely to be economic transmission investments that Transpower could progress through Part F to support the development of renewable generation. This analysis will also include consideration of whether there is a case for investigating whether changes are needed to the rules.
Phase 1
The Commission has completed the following process (Phase 1) set out in the table below:
|
Date |
Milestone |
|
3 December 2007 |
Publish draft consultation reports on hydro, wind and geothermal resources and request submissions on analytical framework and draft conclusions |
|
7 December 2007 |
Workshop on draft consultant reports |
|
February 2008 |
Submissions closed on the draft consultant reports |
|
7 April 2008 |
Draft TTER report published |
|
2 May 2008 |
Second workshop on TTER project |
|
9 May 2008 |
Submissions period close on draft TTER report |
|
11 July 2008 |
Published the final TTER report (Phase 1) with the following appendices (including finalised consultant reports):
|
The culmination of Phase 1 of the TTER project was the publication of a final report (final TTER report) and the related consultant and Commission staff reports.
Phase 2
The Commission is considering a number of projects for Phase 2, which may include:
- Investigation into new TTER technologies
- further development of real options analysis
- development of GEM
- investigation into changes to the regulatory framework
- publishing the marine energy technologies report
- amendments to the Grid Upgrade and Investment Review Policy (GUIRP)
- publishing updated GEM analysis
New Zealand Wind Energy Conference 2009
On 21 April 2009, the Commission made a presentation at the New Zealand Wind Energy Conference to outline the achievements of phase 1 of the TTER project as well as to update delegates of the progress being made on phase 2. A copy of the presentation is available below:
The Commission also made 2 other presentations to the Conference, details can be found on the Analysis of wind integration page.
Emerging technologies
The Commission is required to publish a Statement of Opportunities (SOO) as part of its duties in overseeing aspects of transmission investment. Rule 9.1.2 states that the purpose of a SOO is to enable identification of potential opportunities for efficient management of the grid, including investment in upgrades and transmission alternatives. In practice, a SOO also has a wider role to play in informing stakeholders about possible future developments in the power system.
The 2008 SOO did not contain specific information relating to emerging technologies (for instance, the potential for marine and solar energy). The Commission considers that it is important to understand the potential impact of such technologies on the New Zealand electricity market. Accordingly, a work programme has been initiated to look further into emerging technologies and their effects.
The programme will also include sensitivity analysis to assess the impact of key drivers, such as carbon price on the SOO scenarios.
This work will have multiple benefits, such as providing the Commission with information about the status and impacts of emerging technologies, and giving industry participants and other governmental agencies a better perspective of the implications of the adoption of new technologies on the New Zealand energy market. It may also contribute to the development of the next SOO.
Below is the list of issues that have been studied so far:
- Development of Marine Energy in New Zealand
- Cost estimates for thermal peaking plant
- Nuclear Feasibility for a New Zealand System
It is not anticipated that there will be formal consultation on this work. Feedback from participants is welcome at any time and, if relevant, will be taken into consideration. Some work published on this webpage may be included in subsequent Grid Planning Assumptions (GPAs), and in that case would be consulted on during their development.