Update paper published
The Authority and the system operator are nearing the conclusion of an investigation into an alternative dispatchable demand design. This is for the purpose of preparing an estimate of the cost of implementing it, and will allow the Authority to assess the net public benefit of the alternative design. Once that assessment is complete, the Authority will decide whether to continue with the original design or to propose the alternative design. The Authority has published a paper to update the industry on the status of dispatchable demand and describe the alternative design option being investigated .
Update on alternative option
The Authority and the system operator have jointly carried out a detailed analysis of an alternative option of the dispatchable demand regime. At its meeting on 6 November 2012, the Board resolved to pause work on the existing (gazetted) design and prepare a consultation paper proposing modifications to the design for dispatchable demand which:
- would rely on dispatch instructions being issued from one of the schedules used to create forecast prices, such as the Real Time Pricing (RTP) schedule or the Price Responsive Schedule (PRS), rather than the Real Time Dispatch (RTD) schedule that is used to dispatch generation and instantaneous reserves;
- would allow for participation at any grid exit point (GXP), rather than being limited to non-conforming GXPs as in the existing design;
- would be cheaper than the revised estimate for the existing design; and
- could be implemented by the end of April 2014 (cf. the revised date of July 2014 for the existing design).
The modified design would slightly reduce the functionality in that it will not enable the co-optimisation of dispatchable demand bids and interruptible load offers. However, the option to add this at a later date will remain available if experience reveals that doing so would deliver long-term benefits to consumers.
Full industry consultation will take place in the usual manner as part of any proposal to amend the Electricity Industry Participation Code 2010. This consultation is planned for February/March 2013.
Since the dispatchable demand Code was gazetted the system operator has been undertaking a detailed design of the software changes needed to meet the Code requirements and developing a cost estimate to carry these out. This work has shown that June 2013 implementation will not be possible and that the cost will be higher that used in the initial cost benefit assessment. Consequently, the Authority and the system operator have been working together to reassess the design for potentially more effective ways to deliver the intent of the dispatchable demand regime.
The system operator proposed a number of alternative options which the Authority and the system operator have jointly explored.
Code Amendments gazetted
The Code amendments for a dispatchable demand regime were gazetted on 20 October 2011. A copy of the Gazette Notice and Code Amendments are available on the Code Amendments 2011 page.
The authority has published a brief overview paper of both the Dispatchable Demand and DSBF initiatives.
Dispatchable demand regime consultation, July 2011
Following the Electricity Commission's consultations on dispatchable demand in September 2009 and May 2010, the Authority further developed the dispatchable demand proposal and published a consultation paper in July 2011 which included proposed code amendments. The Authority received 12 submissions on the proposal. Further information on the consultation paper and submissions is available at the consultation page.
Dispatchable demand regime consultation, May 2010
Based on the submissions on the Dispatchable Demand - options consultation, a more detailed proposal was published as the Dispatchable Demand Regime consultation paper on 20 May 2010.
Following submissions to the Dispatchable Demand Regime consultation, the proposal is being more fully developed for implementation.
Dispatchable demand - options consultation, September 2009
The Dispatchable Demand - options consultation paper, considered four high level dispatchable demand options. Seventeen submissions were received.
A conference was held in May 2010 to provide an overview of the consultation documents and an opportunity for industry participants to discuss the options.
dispatchable-demand-summary-submissions.pdf | pdf | 67 KB | Last Changed: 20/10/2010 9:31am
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