We have decided to request that the system operator enable and use a new facility to share sustained instantaneous reserve across the HVDC inter-island link. Enabling and using such a facility would promote our statutory objective by reducing the quantity of sustained instantaneous reserve procured and increasing competition between instantaneous reserve providers in each island. This initiative is an interim step in the project to implement a national market for instantaneous reserve.

We made our decision after considering submissions on an information paper about sharing sustained instantaneous reserve across the HVDC link, which we published in June 2015.

The system operator will issue a customer advice notice to advise the market of its implementation plans in the next few weeks.