System security and resilience
Managing peak electricity demand
How to better manage risks to electricity supply during peak demand periods.
Overview
The Electricity Authority is continuing work to support the electricity system to better coordinate resources during peak demand periods.
On 21 November 2023, we decided to permanently implement three options to better manage risks to electricity supply during peak demand periods.:
- Option A: Provide better information on headroom in supply stack
- Option B: Provide forecast spot prices under demand sensitivity cases
- Option D: System operator review of wind offers based on external forecast
On 28 March 2024, we released a decision to amend the Code to permanently implement Option E (Clarify availability and use of ‘discretionary demand’ control). This decision was part of the Code amendment omnibus #2. Read decision paper.
Timeline
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28 March 2024
Decision —Code amendment to permanently implement Option E
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12 January 2024
Consultation —Potential solutions for peak electricity capacity issuesView consultation -
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21 November 2023
Decision —Permanently implement Options A, B and D
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Winter 2023
Implementation —Option A: Provide better information headroom in supply stack. Option A is live in WITS
Option B: Provide forecast spot prices under demand sensitivity cases. Option B is live in WITS
Option D: System operator review of wind offers based on external forecast. Option D is live via EMS
Option E: Clarify availability and use of 'discretionary demand' control
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9 March 2023
Decision — -
25 November - 16 December 2022
Consultation —Driving efficient solutions to promote consumer interests through winter 2023View consultation -
Project background
The Electricity Authority is dedicated to making market improvements to enhance the reliability of New Zealand’s electricity system.
Since mid-2021 there has been an increase in the number of trading periods where the available electricity supply is tight, relative to the expected demand and normal reserve requirements. A key reason for this is the increased role of intermittent generation and the growing cost of gas, coal and carbon emissions. This project looks at how to better manage residual supply risk and solutions for responding to large, unexpected changes in wholesale electricity capacity requirements.
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