Development of dispatchable demand
The Authority, and its predecessor, the Electricity Commission, have been working on the design of a workable dispatchable demand mechanism since 2009. The problems faced by demand-side participants were acknowledged to be a key priority to be addressed during Government’s 2009 electricity market reforms, which confirmed the project as a top priority for the Authority. Section 42(2)(d) of the Electricity Industry Act 2010 required the Authority to amend the Electricity Industry Participation Code to provide “mechanisms to allow participants who buy electricity on the wholesale market (commonly called the demand side) to benefit from demand reductions”.
The Authority gazetted amendments to the Code in October 2011, and since then has been working with its service providers Transpower and NZX to put the dispatchable demand mechanism in place.
During the implementation phase, the providers suggested amendments to the Code to modify the design of dispatchable demand so that it can be implemented for less cost and across all grid exit points (GXPs). The Authority published a Code amendment for consultation on 23 July 2013 with submissions due by 3 September 2013. Decisions following consultation are expected to be made by October 2013 and the Code amendments gazetted in late 2013.
Development of dispatchable demand provides the history of the development of the Code amendments to provide for dispatchable demand. On this page you will find links to consultation papers explaining the approach to the design of the regime, cost-benefit analyses, and submissions made by industry participants.
Implementing dispatchable demand
Dispatchable demand is intended to go live on 15 May 2014.
The Authority with Transpower (as the system operator), and NZX (as the Wholesale Information and Trading System (WITS) manager), are working on:
- setting up the required IT system changes
- participant readiness – engaging with parties who may decide to use dispatchable demand to ensure they have information and support to be able to participate.
Preparing for dispatchable demand - information for participants provides the information of use to potential dispatchable demand participants, including key dates and the implementation timeline.