Market Development Advisory Group

The Market Development Advisory Group provides us with independent advice on issues that relate to pricing and cost allocation, risk and risk management, and operational efficiencies.

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Role

We formed the Market Development Advisory Group (MDAG) in October 2017.

MDAG provides independent advice to us on the development of the Electricity Industry Participation Code 2010 and market facilitation measures.

MDAG focuses its advice on matters relating to the evolution of the ‘machinery’ of the electricity market, specifically:

  • initiatives to promote efficient pricing in markets and for monopoly services
  • initiatives to promote efficient management of capacity and energy risks
  • any other policy matters that the Authority considers appropriate.

Pricing in a renewables-based electricity system

New Zealand has committed to achieving net zero emissions by 2050, with the Government aspiring to achieve 100% renewable electricity by 2030. Over the coming decades it is likely that heating and transportation in New Zealand will need to be electrified, causing a significant increase in demand for electricity. This will need to be met by large quantities of new renewable electricity generation.

MDAG is investigating how the wholesale electricity market might operate with an electricity supply that is renewables-based. MDAG is identifying and analysing solutions for future action and will develop recommendations for the Electricity Authority for changes to the wholesale electricity market. The aim of these recommendations is to ensure economically efficient price signals and the efficient operation of the electricity industry for the long-term benefit of consumers.

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Meeting papers

Here are the minutes from MDAG meetings. Meeting minutes are published once they have been approved at a subsequent meeting.

2023

Members

MDAG is made up of nine representatives who are appointed by the Electricity Authority to represent a broad array of expertise in the electricity industry:

  • Tony Baldwin - Chair
  • Paul Baker (Nova Energy)
  • Matthew Cleland (Contact Energy)
  • Stu Innes (emhTrade)
  • Tony Oosten (Fonterra)
  • Rebecca Osborne (Transpower)
  • Andrew Kerr (Powerco)
  • Fiona Wiseman (Manawa Energy)
  • Al Yates (Ecotricity NZ)

Key documents