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Contact phone: +64 4 460 8860

Contact address: PO Box 10041, Wellington 6143

 

 

Electricity Industry Participation Code (Wholesale market arrangements for battery energy storage systems) Amendment 2026

 

This amendment to the Electricity Industry Participation Code 2010 (Code) is made under section 38 of the Electricity Industry Act 2010 (Act) by the Electricity Authority having complied with section 39 of the Act.

 

 

 

Contents

 

1

Title

4

2

Commencement

4

3

Code amended

4

 

 

 

Part 1

Amendments to Parts 1, 8, 13 and 15 of the Electricity Industry Participation Code that come into force on 30 October 2026

 

4

Clause 1.1 amended (Interpretation)

4

5

Clause 8.25 amended (Other asset owner performance obligations and technical standards)

7

6

Clause 13.3A amended (Approval process for dispatch-capable load stations)

7

7

Clause 13.3E amended (Approval process for dispatch notification purchasers)

8

8

Clause 13.3F amended (Approval process for dispatch notification generators)

8

9

Clause 13.6 amended (Requirements for generators when submitting offers)

8

10

New clause 13.6A inserted (Requirements for battery energy storage system owners when submitting bids and offers)

8

 

13.6A  (Requirements for battery energy storage system owners when submitting bids and offers)

 

11

Clause 13.7AA amended (Purchaser to submit bids for non-dispatch-capable load)

9

12

Clause 13.7AB amended (Timeframe for submitting bids to system operator)

9

13

Clause 13.8 amended (Deemed offers)

9

14

Clause 13.8A amended (Deemed nominated bids)

9

15

Clause 13.9A amended (Offer not to exceed capability)

9

16

New clause 13.9AA inserted (Battery energy storage system offers and bids not to exceed adjusted capability)

9

 

13.9AA  Battery energy storage system offers and bids not to exceed adjusted capability

 

17

Clause 13.10 amended (Generators must specify units in offers)

9

18

Clause 13.11 amended (Offers may be made by unit or plant)

10

19

Clause 13.12 replaced  (Offers may contain up to 5 price bands)

10

 

13.12   Offers may contain a maximum number of price bands

 

20

Clause 13.17 amended (Offers may be revised)

10

21

Clause 13.18 amended (When revised offer to be submitted)

10

22

New clause 13.18B inserted (When a battery energy storage system owner must revise offer and bid)

10

 

13.18B    When a battery energy storage system owner must revise offer and bid

 

23

Clause 13.19 amended (When revised offers may be submitted during gate closure period)

11

24

New clause 13.19AAA inserted (When a battery energy storage system owner may submit revised offers or bids during gate closure)

11

 

13.19AAA When a battery energy storage system owner may submit revised offers or bids during gate closure period

 

25

Clause 13.19AA amended (Limitations on revised offers)

11

26

New clause 13.19AB inserted (Limitations on revised offers and bids for battery energy storage system owners)

12

 

13.19AB Limitations on revised offers and bids for battery energy storage system owners

 

27

Clause 13.19A amended (Bids may be revised)

13

28

Clause 13.19B amended (Bids must be revised)

13

29

Clause 13.21 amended (Authority informed of revised nominated dispatch bid or offer during gate closure period)

13

30

Clause 13.25 amended (Exception for small generation)

13

31

New clause 13.25A inserted (Exception for small battery energy storage systems)

13

 

13.25A    Exception for small battery energy storage systems

 

32

Clause 13.39 amended (Inter-relationship between reserve and energy offers)

13

33

Clause 13.40A amended (Inter-relationship between reserve offers and nominated dispatch bids)

14

34

Clause 13.57 amended (The dispatch objective)

14

35

Clause 13.69B amended (Inputs for dispatch schedule)

14

36

Clause 13.72 amended (System operator to issue dispatch instructions and dispatch notifications)

14

37

Clause 13.73 amended (Content of dispatch instructions and dispatch notifications)

14

38

Clause 13.75 amended (Form of dispatch instruction and dispatch notification)

14

39

Clause 13.76 amended (System operator to issue and log dispatch instructions and dispatch notifications)

14

40

Clause 13.82 amended (Dispatch instructions to be complied with)

14

41

Clause 13.83A and heading amended (Dispatchable load purchasers to make staff or facilities available to meet dispatch instructions and dispatch notifications)

15

42

Clause 13.194 amended (Clearing manager to calculate constrained off amounts)

15

43

Clause 13.199 amended (Clearing manager to make details of constrained off amounts available)

15

44

Clause 13.201A amended (Dispatched purchasers entitled to constrained off compensation and purchasers to pay constrained off compensation)

15

45

Clause 13.204 amended (Calculation of constrained on amounts)

15

46

Clause 13.212 amended (Payment of constrained on compensation)

16

47

Clause 15.1 amended (Contents of this Part)

16

48

Clause 15.5A and heading amended (Dispatchable load purchaser must prepare dispatchable load information)

16

49

Clause 15.5C amended (Aggregating and rounding dispatchable load information)

16

50

Clause 15.5D amended (Dispatchable load information to be delivered to reconciliation manager)

16

51

Clause 15.20B amended (Reconciliation manager loss adjusts and summarises dispatchable load information)

17

52

Clause 15.20D and heading amended (Reconciliation manager to provide loss adjusted and summarised dispatchable load information to dispatchable load purchasers)

17

53

Clause 15.38 amended (Functions requiring certification)

17

 

 

 

Part 2

Amendments to Parts 1 and 13 of the Electricity Industry Participation Code that come into force on 31 March 2028

 

54

Clause 1.1 amended (Interpretation)

17

55

Clause 13.9 amended (Information that offers must contain)

20

56

Clause 13.9AA and heading amended (Battery energy storage systems offers and bids not to exceed adjusted capability)

20

57

Clause 13.13 amended (Information to be contained in bids)

20

58

Clause 13.17 amended (Offers may be revised)

21

59

Clause 13.18B amended (When a battery energy storage system owner must revise offer and bid)

21

60

Clause 13.19AAA amended (When a battery energy storage system owner may submit revised offers or bids during gate closure period)

22

61

Clause 13.19AB amended (Limitations on revised offers and bids for battery energy storage system owners)

22

62

Clause 13.19A amended (Bids may be revised)

23

63

Clause 13.38 amended (Ancillary service agents to submit reserve offers to system operator)

23

64

Clause 13.44 amended (How quantity is to be specified in reserve offers)

23

65

Clause 13.46 amended (Reserve offer may be revised)

23

66

Clause 13.58A amended (Inputs for price-responsive schedule and non-response schedule)

23

67

Clause 13.69B amended (Inputs for dispatch schedule)

24

68

Clause 13.105A amended (Information to be made available to purchasers, generators, and ancillary service agents)

24

69

Clause 13.192 amended (Constrained off situations may occur)

24

70

Clause 13.193 amended (Determining affected price bands for block dispatch groups and station dispatch groups)

25

71

Clause 13.194 amended (Clearing manager to calculate constrained off amounts)

25

72

Clause 13.204 amended (Calculation of constrained on amounts)

25

73

Schedule 13.1, new forms 10 and 11 inserted

25

74

Clause 1 of Schedule 13.3 amended

26

75

Clause 9A of Schedule 13.3 amended

26

76

New clause 9B of Schedule 13.3 inserted

27

 

9B       State of charge for battery energy storage systems

 

77

Clause 10 of Schedule 13.3 amended

27

78

Clause 12 of Schedule 13.3 amended

27

79

Clause 1 of Schedule 13.3B amended

28

 

Schedule

New Schedule 13.1 Forms 10 and 11 inserted

29

 

Amendment

 

1        Title

This is the Electricity Industry Participation Code (Wholesale market arrangements for battery energy storage systems) Amendment 2026.

 

2        Commencement

          This amendment comes into force on 30 October 2026, except for clauses 54 to 79, which come into force on 31 March 2028.

         

3        Code amended

This amendment amends the Electricity Industry Participation Code 2010.

 

Part 1

Amendments to Parts 1, 8, 13 and 15 of the Electricity Industry Participation Code that come into force on 30 October 2026

 

4        Clause 1.1 amended (Interpretation)

(1)     In clause 1.1(1), insert in their appropriate alphabetical order:

adjusted consumption capability means the maximum amount of power a battery energy storage system station can consume, expressed in MW, for the duration of a trading period, at the point of connection to the grid for which a bid is submitted, where that amount is:

(a)     calculated as the battery energy storage system station’s headroom for storing energy, based on the difference between the maximum amount of energy the battery energy storage system station can store and the state of charge at the beginning of that trading period, converted into a maximum rate of consumption in MW for that trading period, and accounting for:

(i)      the maximum continuous power capacity of the battery energy storage system station;

(ii)    any relevant commissioning or testing limits for the battery energy storage system station;

(iii)   any limits on conveying electricity between the battery energy storage system station and the point of connection to the grid, including any limits or constraints on the battery energy storage system owner’s assets and any limits or constraints on relevant distribution network assets; and

(iv)    any limits required to ensure personnel or plant safety; and

(b)     adjusted where necessary to account for:

(i)      the effect of any relevant outages, including any such outages affecting the battery energy storage system owner’s plant or equipment, or the relevant distribution network;

(ii)    losses in conveying electricity between the battery energy storage system and the grid;

(iii)   losses in converting between chemical and electrical energy; and

(iv)    the auxiliary load expected when the battery energy storage system station is operating at maximum consumption; and

(c)     adjusted to ensure that, under any reasonably foreseeable circumstances, the battery energy storage system owner is able to meet any conditions which the battery energy storage system owner intends to comply with for the purposes of maintaining any warranty provided by the original equipment manufacturer

adjusted generation capability means the maximum amount of power a battery energy storage system station can generate, expressed in MW, for the duration of a trading period, at the point of connection to the grid for which an offer is submitted, where that amount is:

(a)     calculated as the battery energy storage system station’s available stored energy, based on the difference between the minimum amount of energy the battery energy storage system station can store and the state of charge at the beginning of that trading period, converted into a maximum rate of generation in MW for that trading period, and accounting for:

(i)      the maximum continuous power capacity of the battery energy storage system station;

(ii)    any relevant commissioning or testing limits for the battery energy storage system station;

(iii)   any limits on conveying electricity between the battery energy storage system station and the point of connection to the grid, including any limits or constraints on the battery energy storage system owner’s assets and any limits or constraints on relevant distribution network assets; and

(iv)    any limits required to ensure personnel or plant safety; and

(b)     adjusted where necessary to account for:

(i)      the effect of any relevant outages, including any such outages affecting the battery energy storage system owner’s plant or equipment, or the relevant distribution network;

(ii)    losses in conveying electricity between the battery energy storage system and the grid;

(iii)   losses in converting between chemical and electrical energy; and

(iv)    the auxiliary load expected when the battery energy storage system station is operating at maximum generation; and

(c)     adjusted to ensure that, under any reasonably foreseeable circumstances, the battery energy storage system owner is able to meet any conditions which the battery energy storage system owner intends to comply with for the purposes of maintaining any warranty provided by the original equipment manufacturer

battery energy storage system means an energy storage system in which the energy is stored exclusively in electro-chemical form

battery energy storage system owner means a person who owns a battery energy storage system, or any person who acts, in respect of Parts 13, 14 and 15, on behalf of any person who owns such a battery energy storage system, to the extent that person is acting in respect of that battery energy storage system

battery energy storage system station means one or more battery energy storage systems that are directly connected to a network and that inject into the network at a single point of connection

state of charge means the energy stored in a battery energy storage system at a specific point in time, measured in MWh

(2)     In clause 1.1(1), definition of bid, paragraph (b), after “clause”, insert “13.19AB,”.

(3)     In clause 1.1(1), definition of bona fide physical reason, after subparagraph (b)(iv), insert:

(baa) in relation to a battery energy storage system owner, —

(i)      a reasonably unforeseeable change in consumption capability from a battery energy storage system station; or

(ii)    a reasonably unforeseeable change in circumstances which the battery energy storage system owner reasonably expects to result in a breach of one or more conditions with which the battery energy storage system owner reasonably considers it must comply for the purposes of maintaining any warranty provided by the original equipment manufacturer; and

(4)     In clause 1.1(1), definition of dispatchable load information, after “dispatch-capable load station”, insert “or battery energy storage system station”.

(5)     In clause 1.1(1), definition of gate closure period—

(a)     in the chapeau, after “or for which a dispatchable load purchaser”, insert “or battery energy storage system owner”; and

(b)     in paragraph (b), above subparagraph (i), insert:

(ia)    a battery energy storage system owner (except for a battery energy storage system owner that is also an embedded generator) where that battery energy storage system owner is submitting an offer or a reserve offer: 

(6)     In clause 1.1(1), definition of generating station, after “a single point of injection”, insert “, and includes a battery energy storage system station”.

(7)     In clause 1.1(1), definition of generating unit, after “produce electricity”, insert “, and includes a battery energy storage system”.

(8)     In clause 1.1(1), definition of generator, after “and includes”, insert “battery energy storage system owners,”.

(9)     In clause 1.1(1), definition of nominated bid:

(a)     in paragraph (d), replace “clause” with “clauses 13.6A or”; and

(b)     in subparagraph (d)(i), after “a dispatch-capable load station”, insert “or battery energy storage system”.

(10)   In clause 1.1(1), definition of nominated dispatch bid, after “in relation to”, insert “a battery energy storage system station or”.

(11)   In clause 1.1(1), definition of offer—

(a)     after “clause 13.6(1)”, insert “or clause 13.6A”; and

(b)     replace “13.19” with “13.19AAA”.

(12)   In clause 1.1(1), definition of purchaser, after “a person”, insert “, including a battery energy storage system owner,”.

(13)   In clause 1.1(1), definition of reconciliation participant, in subparagraph (a)(v), after “including a dispatchable load purchaser”, insert “and a battery energy storage system owner”.

 

5        Clause 8.25 amended (Other asset owner performance obligations and technical standards)

(1)     In clause 8.25(5)(a), after “an embedded generator”, insert “(except an embedded generator that is a battery energy storage system owner)”.

(2)     Before clause 8.25(5)(b), insert:

(aa)    may require that a battery energy storage system owner that is an embedded generator provide information regarding the intended output and consumption of each battery energy storage system station greater than 10 MW in capacity, that must be either―

(i)      submitted as an offer and a bid in accordance with subpart 1 of Part 13; or

(ii)     provided in a form and manner agreed between the system operator and the battery energy storage system owner; and

(3)     In clause 8.25(5)(b), after “the embedded generator”, insert “or battery energy storage system owner”.

 

6        Clause 13.3A amended (Approval process for dispatch-capable load stations)

(1)     In clause 13.3A(1), after “A purchaser at a GXP”, insert “, other than a battery energy storage system owner,”.

(2)     After clause 13.3A(5), insert:

(6)     The approval for any battery energy storage system station as a dispatch-capable load station prior to 30 October 2026 is revoked with immediate effect from 30 October 2026.

 

7        Clause 13.3E amended (Approval process for dispatch notification purchasers)

          In clause 13.3E(1), after “A purchaser”, insert “, other than a battery energy storage system owner,”.

 

8        Clause 13.3F amended (Approval process for dispatch notification generators)

          In clause 13.3F(1), after “A generator”, insert “, other than a battery energy storage system owner,”.

 

9        Clause 13.6 amended (Requirements for generators when submitting offers)

After clause 13.6(6), insert:

(7)     Nothing in this clause applies to a battery energy storage system owner.

 

10      New clause 13.6A inserted

After clause 13.6, insert:

13.6A Requirements for battery energy storage system owners when submitting bids and offers

(1)     Each battery energy storage system owner with a point of connection to the grid, and each battery energy storage system owner which is an embedded generator and is required by the system operator to submit an offer under clause 8.25(5), must—

(a)      submit to the system operator an offer and a nominated bid for each trading period in the schedule period, under which the battery energy storage system owner is prepared to sell electricity to, or buy electricity from, the clearing manager; and 

(b)     ensure that the system operator receives an offer and nominated bid at least 71 trading periods before the beginning of the trading period to which the offer and nominated bid relates.

(2)     Despite subclause (1), a battery energy storage system owner must give at least 5 business days' notice in writing to the system operator and the clearing manager before the battery energy storage system owner makes an offer and a nominated bid for the first time in respect of the battery energy storage system station that is the subject of the offer and nominated bid.

(3)     The notice must state —

(a)      the point of connection to the grid at which electricity generated by the battery energy storage system station is sold to the clearing manager under clause 14.3 or 14.4; and

(b)     the point of connection to the grid at which electricity stored by the battery energy storage system station is bought from the clearing manager under clause 14.3 or 14.4.

(4)     A battery energy storage system owner must comply with any request from the system operator for information concerning the battery energy storage system station that is the subject of a notice under subclause (2) if the system operator requires the information for the purposes of scheduling and dispatch in accordance with this Code.

(5)     Despite subclause (1), if a battery energy storage system owner intends to permanently cease to submit offers and nominated bids to the system operator in respect of any battery energy storage system station, the battery energy storage system owner must give at least 5 business days' notice in writing to the system operator and the clearing manager.

 

11      Clause 13.7AA amended (Purchaser to submit bids for non-dispatch-capable load)

          In clause 13.7AA(1)—

(a)     in paragraph (b), replace “.” with “; and”; and

(b)     after paragraph (b), insert:

(c)     is not a battery energy storage system owner.

 

12      Clause 13.7AB amended (Timeframe for submitting bids to system operator)

          In clause 13.7AB(1) and clause 13.7AB(2), after “Each purchaser”, insert “, other than a battery energy storage system owner,”.

 

13      Clause 13.8 amended (Deemed offers)

(1)     In clause 13.8(2), replace “clause 13.9A applies” with “clauses 13.9A and 13.9AA apply”.

(2)     In clause 13.8(3), replace “13.19” with “13.19AAA”.

 

14      Clause 13.8A amended (Deemed nominated bids)

In clause 13.8A(3), after “with clause”, insert “13.19AAA or”.

         

15      Clause 13.9A amended (Offer not to exceed capability)

In clause 13.9A(2), after “intermittent generator”, insert “or a battery energy storage system owner”.

 

16      New clause 13.9AA inserted (Battery energy storage system offers and bids not to exceed adjusted capability)

After clause 13.9A, insert:

13.9AA    Battery energy storage system offers and bids not to exceed adjusted capability

The total MW specified in each offer and bid submitted by a battery energy storage system owner must, in relation to the battery energy storage system station that is the subject of the offer and bid, not exceed the adjusted generation capability or adjusted consumption capability, whichever is applicable, for that battery energy storage system station for the relevant trading period.

 

17      Clause 13.10 amended (Generators must specify units in offers)

In clause 13.10, after paragraph (a), insert:

(ab)        be specific to individual battery energy storage system stations; or

18      Clause 13.11 amended (Offers may be made by unit or plant)

In clause 13.11(1), after “other than an intermittent generator”, insert “or a battery energy storage system owner”.

 

19      Clause 13.12 replaced (Offers may contain up to 5 price bands)

Replace clause 13.12 with:

13.12 Offers may contain a maximum number of price bands

(1)     Subject to clause 13.9(d), an offer submitted by a generator, other than a battery energy storage system owner, may have a maximum of 5 price bands for each trading period, with the 1st price band containing the lowest price offered, and each subsequent band having a higher price than the band preceding it.

(2)     An offer submitted by a battery energy storage system owner may have a maximum of 10 price bands for each trading period, with the 1st price band containing the lowest price offered, and each subsequent band having a higher price than the band preceding it.

 

20      Clause 13.17 amended (Offers may be revised)

(1)     In clause 13.17(3), replace “13.19, or” with “13.18B, 13.19, 13.19AAA, or”.

(2)     In clause 13.17(4), after “clause 13.19”, insert “or 13.19AAA”.

 

21      Clause 13.18 amended (When revised offer to be submitted)

In clause 13.18(1) and clause 13.18(1A), after “intermittent generator”, insert “or a battery energy storage system owner”.

 

22      New clause 13.18B inserted (When a battery energy storage system owner must revise offer and bid)

After clause 13.18A, insert:

13.18B When a battery energy storage system owner must revise offer and bid

(1)     A battery energy storage system owner must submit a revised offer, or bid, to the system operator if necessary to ensure that, as at the start of the gate closure period for the relevant trading period, the total MW specified in the offer, or bid, does not exceed the adjusted generation capability, or adjusted consumption capability, whichever is applicable, for that battery energy storage system station for the relevant trading period.

(2)     A battery energy storage system owner must immediately submit a revised offer, or bid, to the system operator if:

(a)     the total MW specified in that offer, or bid, exceeds, by more than 5 MW, the adjusted generation capability, or adjusted consumption capability, whichever is applicable, for that battery energy storage system station, for the relevant trading period; and

(b)     if the gate closure period has started, one or more of the conditions in clause 13.19AAA(1)(a) to (e) applies.

(3)     The submission of a revised offer or bid under this clause does not relieve the battery energy storage system owner of liability for breach of any other provision of this Code.

 

23      Clause 13.19 amended (When revised offers may be submitted during gate closure period)

In clause 13.19(1), after “intermittent generator”, insert “or a battery energy storage system owner”.

 

24      New clause 13.19AAA inserted (When a battery energy storage system owner may submit revised offers or bids during gate closure period)

After clause 13.19, insert:

13.19AAA When a battery energy storage system owner may submit revised offers or bids during gate closure period

(1)     Subject to clause 13.19AB, a battery energy storage system owner may submit a revised offer or bid to the system operator during a gate closure period only if—

(a)     the revision is necessary due to a bona fide physical reason; or

(b)    the system operator issues a formal notice under clause 5 of Technical Code B of Schedule 8.3; or

(c)     a bona fide physical reason that made a revision necessary under paragraph (a) ceases to exist sooner than was expected at the time it arose, and the 1st trading period after the original bona fide physical reason ceases to exist is within 24 hours after the circumstances that constituted the original bona fide physical reason arose; or

(d)    the total MW specified in the offer or bid, in relation to the battery energy storage system station that is the subject of the offer or bid, exceeds the adjusted generation capability or adjusted consumption capability, whichever is applicable, for that trading period; or

(e)     the state of charge the battery energy storage system station is expected to have at the beginning of the trading period to which the offer or bid relates differs from the state of charge a reasonable battery energy storage system owner assessing the matter immediately before the start of the gate closure period would have expected the battery energy storage system station to have at the beginning of that trading period.

(2)     A battery energy storage system owner that submits a revised offer or bid under subclause (1)(c) must do so as soon as possible after the relevant bona fide physical reason ceases to exist.

(3)     The submission of a revised offer or bid under this clause does not relieve the battery energy storage system owner of liability for breach of any other provision of this Code.

 

25      Clause 13.19AA amended (Limitations on revised offers)

In clause 13.19AA, after “A generator”, insert “, other than a battery energy storage system owner,”.

 

26      New clause 13.19AB inserted (Limitations on revised offers and bids for battery energy storage system owners)

After clause 13.19AA, insert:

13.19AB     Limitations on revised offers and bids for battery energy storage system owners

(1)     A battery energy storage system owner that submits a revised offer or bid in reliance on clause 13.19AAA(1)(a), (b) or (d) during a gate closure period must ensure that the MW specified in the revised offer or bid only differs from the original offer or bid to the extent necessary to ensure that the MW specified in the revised offer or bid is the adjusted generation capability or adjusted consumption capability, whichever is applicable.

(2)     A battery energy storage system owner that submits a further revised offer or bid under clause 13.19AAA(1)(c) during a gate closure period must ensure that the total change in MW as between that further revised offer or bid and the offer or bid as revised to account for the bona fide physical reason is the same or less than the total change in MW made to the original offer or bid as a result of the bona fide physical reason.

(3)     A battery energy storage system owner that submits a revised offer or bid under clause 13.19AAA(1)(e) during a gate closure period must ensure that the MW in the revised offer or bid does not—

(a)     exceed the adjusted generation capability or adjusted consumption capability, whichever is applicable; or

(b)    exceed the MW specified in the original offer or bid, if there was a decrease in expected generation or consumption capability relative to that expected at the time the original offer or bid was submitted; or

(c)     reduce the MW specified in the original offer or bid, if there was an increase in expected generation or consumption capability relative to that expected at the time the original offer or bid was submitted; or

(d)    differ from the MW in the original offer or bid by more than the change in expected capability from the original offer and bid.

(4)     A revised offer under this clause must comply with the following:

(a)     the reduction in MW specified in the revised offer must be first deducted from the MW offered in the highest price band:

(b)    if the reduction in MW exceeds the MW in the highest price band, the remainder must be deducted from the price bands below the highest, in descending order as the MW in each price band is reduced to zero, until all of the reduction is reflected in the revised offer.

(5)     A revised bid under this clause must comply with the following:

(a)     the reduction in MW specified in the revised bid must be first deducted from the MW bid for in the lowest price band:

(b)     if the reduction in MW exceeds the MW in the lowest price band, the remainder must be deducted from the price bands above the lowest, in ascending order as the MW in each price band is reduced to zero, until all of the reduction is reflected in the revised bid.

 

27      Clause 13.19A amended (Bids may be revised)

(1)     In clause 13.19A(1), after “Each purchaser”, insert “, other than a battery energy storage system owner,”.

(2)     After clause 13.19A(1B), insert:

(1C)  Subject to subclauses (1D) to (1F) and clause 13.18B, a battery energy storage system owner may revise a bid at any time before the end of the trading period to which the bid relates by submitting a new bid to the system operator.

(1D)  A battery energy storage system owner must not revise any of its bid prices during a gate closure period.

(1E)   A battery energy storage system owner must not revise the MW specified in any price band in a bid during a gate closure period, unless clause 13.18B or 13.19AAA applies.

(1F)   A battery energy storage system owner must not revise the maximum output (including overload) provided for in its bid during a gate closure period, unless clause 13.19AAA applies.

 

28      Clause 13.19B amended (Bids must be revised)

In clause 13.19B(1), replace “the purchaser that submitted the nominated bid” with “a purchaser, other than a battery energy storage system owner, that submitted the nominated bid”.

 

29      Clause 13.21 amended (Authority informed of revised nominated dispatch bid or offer during gate closure period)

In clause 13.21(1) and clause 13.21(1A), after “dispatchable load purchaser”, insert “, battery energy storage system owner,”.

 

30      Clause 13.25 amended (Exception for small generation)

After clause 13.25(2), insert:

(3)     Subclauses (1) and (2) do not apply to a battery energy storage system owner.

 

31      New clause 13.25A inserted (Exception for small battery energy storage systems)

After clause 13.25, insert:

13.25A Exception for small battery energy storage systems

(1)     Despite clause 13.6A(1), a battery energy storage system owner is not required to submit offers or bids for a battery energy storage system station that has a maximum continuous MW output power of 10 MW or smaller and any electricity sold to the clearing manager from the battery energy storage system station is regarded as unoffered generation for the purpose of this Code.

(2)     The system operator may require the relevant battery energy storage system owner to provide information in a form reasonably determined by the system operator on the expected generation output for any unoffered generation from a battery energy storage system station with a point of connection to the grid.

 

32      Clause 13.39 amended (Inter-relationship between reserve and energy offers)

In clause 13.39, after “and 13.6(1) to (3)”, insert “or 13.6A(1) or (2)”.

 

33      Clause 13.40A amended (Inter-relationship between reserve offers and nominated dispatch bids)

In clause 13.40A, after “13.7(1) to (3)”, insert “(or clause 13.6A(1) in respect of a nominated dispatch bid made by a battery energy storage system owner)”.

 

34      Clause 13.57 amended (The dispatch objective)

In clause 13.57(a), after “dispatch-capable load stations”, insert “or battery energy storage system stations”.

 

35      Clause 13.69B amended (Inputs for dispatch schedule)

In clause 13.69B(1)(b), after “revised nominated dispatch bids (clauses”, insert “13.19AAA,”.

 

36      Clause 13.72 amended (System operator to issue dispatch instructions and dispatch notifications)

In clause 13.72(1)(a)(iii), after “(other than dispatch notification purchasers)”, insert “and battery energy storage system owners”.

 

37      Clause 13.73 amended (Content of dispatch instructions and dispatch notifications)

In clause 13.73(1), after “or dispatchable load purchaser”, insert “or battery energy storage system owner”.

 

38      Clause 13.75 amended (Form of dispatch instruction and dispatch notification)

In clause 13.75(1)(a), after “dispatch-capable load station,”, insert “battery energy storage system station”.

 

39      Clause 13.76 amended (System operator to issue and log dispatch instructions and dispatch notifications)

In clause 13.76(1)(a)—

(a)     after “to each generator”, insert “and each battery energy storage system owner”; and

(b)     after “(other than a generator”, insert “or battery energy storage system owner”.

 

40      Clause 13.82 amended (Dispatch instructions to be complied with)

(1)     In clause 13.82(1)—

(a)     in paragraph (c), replace “.” with “; and”; and

(b)     after paragraph (c), insert:

(d)     a battery energy storage system owner.

(2)     In clause 13.82(2)(b), after “the generating plant”, insert “, battery energy storage system station”.

(3)     In clauses 13.82(2)(f)(i) and 13.82(2)(g)(i), after “is a dispatched purchaser”, insert “or a battery energy storage system owner”.

 

41      Clause 13.83A and heading amended (Dispatchable load purchasers to make staff or facilities available to meet dispatch instructions and dispatch notifications)

(1)     In the heading to clause 13.83A, after “Dispatchable load purchasers”, insert “and battery energy storage system owners”.

(2)     In clause 13.83A, after “dispatchable load purchaser”, insert “or battery energy storage system owner” in each place.

(3)     In clause 13.83A(2), after “dispatch-capable load stations”, insert “or battery energy storage system stations”.

 

42      Clause 13.194 amended (Clearing manager to calculate constrained off amounts)

In clause 13.194(2)—

(a)     after “If a constrained off situation occurs in relation to a dispatch-capable load station”, insert “or battery energy storage system station”; and

(b)     after “must calculate the constrained off amounts for each dispatch-capable load station”, insert “or battery energy storage system station”; and

(c)     after “ConOffAmtdisp is the constrained off amount for a dispatch-capable load station”, insert “or battery energy storage system station”.

 

43      Clause 13.199 amended (Clearing manager to make details of constrained off amounts available)

In clause 13.199(b), after “the generator”, insert “, battery energy storage system owner”.

 

44      Clause 13.201A amended (Dispatched purchasers entitled to constrained off compensation and purchasers to pay constrained off compensation)

(1)     In clause 13.201A(1)—

(a)     after “A dispatched purchaser”, insert “or battery energy storage system owner”; and

(b)     after “in respect of whose dispatch-capable load station”, insert “or battery energy storage system station”.

(2)     In clause 13.201A(3)—

(a)     after “dispatch-capable load station”, insert “or battery energy storage system station” in each place; and

(b)     after “the dispatched purchaser”, insert “or battery energy storage system owner”.

(3)     In clause 13.201A(4), after “dispatched purchaser”, insert “or battery energy storage system owner” in each place.

(4)     In clause 13.201A(6), after “owing to all dispatched purchasers”, insert “and battery energy storage system owners whose bids were dispatched”.

 

45      Clause 13.204 amended (Calculation of constrained on amounts)

          In clause 13.204(1)(aa), after “dispatch-capable load station”, insert “or battery energy storage system station” in each place.

 

46      Clause 13.212 amended (Payment of constrained on compensation)

(1)     In clause 13.212(1)(b), after “a dispatched purchaser”, insert “or battery energy storage system owner”.

(2)     In clause 13.212(1A)—

(a)     after “dispatch-capable load station”, insert “or battery energy storage system station” in each place; and

(b)     after “the dispatched purchaser”, insert “or battery energy storage system owner”.

(3)     In clause 13.212(3)—

(a)     replace “and dispatched purchaser” with “dispatched purchaser, and battery energy storage system owner”; and

(b)     replace “or dispatched purchaser” with “dispatched purchaser, or battery energy storage system owner”.

 

47      Clause 15.1 amended (Contents of this Part)

In clause 15.1(da), after “dispatchable load purchasers”, insert “and battery energy storage system owners”.

 

48      Clause 15.5A and heading amended (Dispatchable load purchaser must prepare dispatchable load information)

(1)     In the heading to clause 15.5A, after “Dispatchable load purchaser”, insert “and battery energy storage system owner”.

(2)     In clause 15.5A(1), after “Each dispatchable load purchaser”, insert “and battery energy storage system owner”.

 

49      Clause 15.5C amended (Aggregating and rounding dispatchable load information)

(1)     In clause 15.5C(1), replace “a dispatchable load purchaser” with “each dispatchable load purchaser or battery energy storage system owner”.

(2)     In clause 15.5C(2),

(a)     after “a dispatch-capable load station”, insert “or a battery energy storage system station”; and

(b)     after “the dispatchable load purchaser”, insert “or battery energy storage system owner”.

 

50      Clause 15.5D amended (Dispatchable load information to be delivered to reconciliation manager)

(1)     In clause 15.5D, after “dispatchable load purchaser”, insert “or battery energy storage system owner” in each place.

(2)     In clause 15.5D(1)(a), after “a dispatch-capable load station”, insert “or a battery energy storage system station”.

 

51      Clause 15.20B amended (Reconciliation manager loss adjusts and summarises dispatchable load information)

          In clause 15.20B(1)(b), after “the dispatchable load purchaser”, insert “or battery energy storage system owner”.

 

52      Clause 15.20D and heading amended (Reconciliation manager to provide loss adjusted and summarised dispatchable load information to dispatchable load purchasers)

(1)     In the heading to clause 15.20D, after “dispatchable load purchasers”, insert “and battery energy storage system owners”.

(2)     In clause 15.20D—

(a)     after “must provide each dispatchable load purchaser”, insert “and battery energy storage system owner”; and

(b)     after “that relates to the dispatchable load purchaser”, insert “or battery energy storage system owner”.

 

53      Clause 15.38 amended (Functions requiring certification)

          In clause 15.38(1A), after “a dispatchable load purchaser”, insert “or battery energy storage system owner”.

 

Part 2

Amendments to Parts 1 and 13 of the Electricity Industry Participation Code that come into force on 31 March 2028

 

54      Clause 1.1 amended (Interpretation)

(1)     In clause 1.1(1), revoke the definitions of adjusted consumption capability and adjusted generation capability.

(2)     In clause 1.1(1), insert in their appropriate alphabetical order:

adjusted consumption capacity means the maximum continuous power a battery energy storage system station can consume, in MW, at the point of connection to the grid for which a bid is submitted in respect of that battery energy storage system station, where that amount is:

(a)     calculated accounting for:

(i)      the maximum continuous power capacity of the battery energy storage system station;

(ii)     any relevant commissioning or testing limits for the battery energy storage system station;

(iii)    any limits on conveying electricity between the battery energy storage system station and the point of connection to the grid, including any limits or constraints on the battery energy storage system owner’s assets and any limits or constraints on relevant distribution network assets; and

(iv)    any limits required to ensure personnel or plant safety; and

(b)          adjusted where necessary to account for:

(i)      the effect of any relevant outages, including any such outages affecting the battery energy storage system owner’s plant or equipment, or the relevant distribution network;

(ii)    any distribution network constraints;

(iii)   losses in conveying electricity between the battery energy storage system and the grid;

(iv)    losses in converting between chemical and electrical energy; and

(v)     the auxiliary load expected when the battery energy storage system station is operating at maximum consumption; and

(c)     adjusted to ensure that, under any reasonably foreseeable circumstances, the battery energy storage system owner is able to meet any conditions it intends to comply with for the purposes of maintaining any warranty provided by the original equipment manufacturer

adjusted generation capacity means the maximum continuous power a battery energy storage system station can generate, in MW, at the point of connection to the grid for which an offer is submitted in respect of that battery energy storage system station where that amount is:

(a)     calculated accounting for:

(i)      the maximum continuous power capacity of the battery energy storage system station;

(ii)    any relevant commissioning or testing limits for the battery energy storage system station;

(iii)   any limits on conveying electricity between the battery energy storage system station and the point of connection to the grid, including any limits or constraints on the battery energy storage system owner’s assets and any limits or constraints on relevant distribution network assets; and

(iv)    any limits required to ensure personnel or plant safety; and

(b)     adjusted where necessary to account for:

(i)      the effect of any relevant outages, including any such outages affecting the battery energy storage system owner’s plant or equipment, or the relevant distribution network;

(ii)    any distribution network constraints;

(iii)   losses in conveying electricity between the battery energy storage system and the grid;

(iv)    losses in converting between chemical and electrical energy; and

(v)     the auxiliary load expected when the battery energy storage system station is operating at maximum generation; and

(c)     adjusted to ensure that, under any reasonably foreseeable circumstances, the battery energy storage system owner is able to meet any conditions it intends to comply with for the purposes of maintaining any warranty provided by the original equipment manufacturer

          adjusted maximum storage limit means the maximum amount of energy a battery energy storage system station can store, in MWh, adjusted to:

(a)     account for any outages affecting the battery energy storage system owner’s plant or equipment; and

(b)     ensure that, under any reasonably foreseeable circumstances, the battery energy storage system owner is able to meet any conditions it intends to comply with for the purposes of maintaining any warranty provided by the original equipment manufacturer

adjusted minimum storage limit for generation means the minimum amount of energy that a battery energy storage system can store, in MWh, adjusted to:

(a)     account for the effect of any outages affecting the battery energy storage system owner’s plant or equipment; and

(b)     ensure that under reasonably foreseeable circumstances the battery energy storage system owner is able to meet any warranty conditions for the battery energy storage system that the owner intends to comply with, assuming that no generation reserve from the battery energy storage system station is activated

adjusted minimum storage limit for generation reserve means the minimum amount of energy that a battery energy storage system can store, in MWh, adjusted to:

(a)     account for the effect of any outages affecting the battery energy storage system owner’s plant or equipment; and

(b)     ensure that under reasonably foreseeable circumstances the battery energy storage system owner is able to meet any warranty conditions for the battery energy storage system that the owner intends to comply with if generation reserve from the battery energy storage system is activated

BESS loss factor means a fixed or variable factor reflecting energy losses in respect of a battery energy storage system station

capped bid means, in relation to a bid made by a battery energy storage system owner, that bid adjusted as necessary to account for the state of charge constraint for the battery energy storage system station as provided for in clause 10 of Schedule 13.3

capped offer means, in relation to an offer made by a battery energy storage system owner, that offer adjusted as necessary to account for the state of charge constraint for the battery energy storage system station as provided for in clauses 9A(d) and (e) of Schedule 13.3

(3)     In clause 1.1(1), definition of bona fide physical reason—

(a)     in paragraph (b)(i), after “ancillary service agent”, insert “, but, in the case of an offer by a battery energy storage system owner, does not include a reasonably unforeseeable change in generation capability arising solely due to the effect of dispatch instructions on the battery energy storage system’s state of charge”; and

(b)     in paragraph (baa)(i), after “from a battery energy storage system station”, insert “, excluding a reasonably unforeseeable change in consumption capability arising solely due to the effect of dispatch instructions on the battery energy storage system’s state of charge”.

(4)     In clause 1.1(1), definition of gate closure period—

(a)     in subparagraphs (a)(i) and (ii), after “an embedded generator”, insert “(except for a battery energy storage system owner)” in each place; and

(b)     in subparagraph (b)(ia), delete “(except for a battery energy storage system owner that is also an embedded generator) where that battery energy storage system owner is submitting an offer or reserved offer”.

 

55      Clause 13.9 amended (Information that offers must contain)

(1)     In clause 13.9(a), after “other than for”, add “battery energy storage system owners,”.

(2)     After clause 13.9(d), insert:

(e)     if the offer is submitted by a battery energy storage system owner, ― 

(i)      contain all information required by Form 10 in Schedule 13.1; and

(ii)    contain a variable BESS loss factor for discharging for a given MW of generation and a fixed BESS loss factor for the trading period to which the offer relates which, taken together, constitute a reasonable estimate of the losses the battery energy storage system owner expects to incur in that trading period; and

(iii)   have a maximum of 10 price bands for each trading period.

 

56      Clause 13.9AA and heading amended (Battery energy storage systems offers and bids not to exceed adjusted capability)

(1)     In the heading of clause 13.9AA, replace “capability” with “capacity”.

(2)     In clause 13.9AA, replace “capability” with “capacity” in each place.

(3)     In clause 13.9AA, insert as subclauses (2) and (3):

(2)     The maximum storage limit specified in each offer and bid submitted by a battery energy storage system owner must, in relation to the battery energy storage system station that is the subject of that offer and bid, not exceed the adjusted maximum storage limit for that battery energy storage system station for the relevant trading period.

(3)     The minimum storage limit specified in each offer and bid submitted by a battery energy storage system owner must, in relation to the battery energy storage system station that is the subject of that offer and bid, not be less than the adjusted minimum storage limit for generation or the adjusted minimum storage limit for generation reserve, whichever is applicable, for that battery energy storage system station for the relevant trading period.

 

57      Clause 13.13 amended (Information to be contained in bids)

(1)     In clause 13.13(1), after “A purchaser”, insert “, other than a battery energy storage system owner,”.

(2)     After clause 13.13(2), insert:

(3)     A battery energy storage system owner must ensure that each of its nominated bids contains:

(a)     all information required by Form 10 in Schedule 13.1; and

(b)     a variable BESS loss factor for charging for a given MW of consumption which, when taken together with the fixed BESS loss factor, constitutes a reasonable estimate of the losses the battery energy storage system owner expects to incur in that trading period.

 

58      Clause 13.17 amended (Offers may be revised)

In clause 13.17(3), after “the MW specified in any price band”, insert “, the minimum storage limit for generation or the minimum storage limit for generation reserve”.

 

59      Clause 13.18B amended (When a battery energy storage system owner must revise offer and bid)

(1)     Replace clause 13.18B(1) with:

(1)     A battery energy storage system owner must submit a revised offer, or bid, to the system operator if necessary to ensure that, as at the start of the gate closure period for the relevant trading period:

(a)     the total MW specified in the offer, or bid, in relation to the battery energy storage system station that is the subject of the offer or bid, does not exceed the adjusted generation capacity or adjusted consumption capacity, whichever is applicable, for that battery energy storage system station for the relevant trading period;

(b)     the maximum storage limit specified in the offer or bid, in relation to the battery energy storage system station that is the subject of the offer or bid, does not exceed the adjusted maximum storage limit for that battery energy storage system station for the relevant trading period;

(c)     the minimum storage limit for generation specified in the offer or bid, in relation to the battery energy storage system station that is the subject of the offer or bid, is not lower than the adjusted minimum storage limit for generation for that battery energy storage system station for the relevant trading period; and

(d)     the minimum storage limit for generation reserve specified in the offer or bid, in relation to the battery energy storage system station that is the subject of the offer or bid, is not lower than the adjusted minimum storage limit for generation reserve for that battery energy storage system station for the relevant trading period.

(2)     Replace clause 13.18B(2) with:

(2)     A battery energy storage system owner must submit a revised offer, or bid, to the system operator, whether or not the gate closure period for the trading period to which that offer or bid relates has commenced, (provided that, when the gate closure period has started, a revised offer, or bid, is required only where one or more of the conditions in clause 13.19AAA(1)(a) to (h) applies) if:

(a)     the total MW specified in the offer, or bid, in relation to the battery energy storage system station that is the subject of the offer, or bid, exceeds the adjusted generation capacity, or adjusted consumption capacity, whichever is applicable, for that battery energy storage system station for the relevant trading period by more than 5 MW; or

(b)     the maximum storage limit for generation specified in the offer, or bid, in relation to the battery energy storage system station that is the subject of the offer, or bid, exceeds the adjusted maximum storage limit for generation for that battery energy storage system station for the relevant trading period by more than 2.5 MWh; or

(c)     the minimum storage limit specified in the offer, or bid, in relation to the battery energy storage system station that is the subject of the offer or bid, is less than the adjusted minimum storage limit for that battery energy storage system station for the relevant trading period by more than 2.5 MWh; or

(d)     the minimum storage limit for generation reserve specified in the offer, or bid, in relation to the battery energy storage system station that is the subject of the offer, or bid, is less than the adjusted minimum storage limit for generation reserve for that battery energy storage system station for the relevant trading period by more than 2.5 MWh.

 

60      Clause 13.19AAA amended (When a battery energy storage system owner may submit revised offers or bids during gate closure period)

(1)     In clause 13.19AAA(1)(d), replace “capability” with “capacity” in both places.

(2)     Revoke clause 13.19AAA(1)(e).

(3)     After clause 13.19AAA(1)(e), insert:

(f)      the maximum storage limit specified in the offer or bid, in relation to the battery energy storage system station that is the subject of the offer or bid, exceeds the adjusted maximum storage limit for the relevant trading period; or

(g)     the minimum storage limit for generation specified in the offer or bid, in relation to the battery energy storage system station that is the subject of the offer or bid, is less than the adjusted minimum storage limit for generation, for that battery energy storage system station for the relevant trading period; or

(h)     the minimum storage limit for generation reserve specified in the offer or bid, in relation to the battery energy storage system station that is the subject of the offer or bid, is less than the adjusted minimum storage limit for generation reserve, for that battery energy storage system station for the relevant trading period.

 

61      Clause 13.19AB amended (Limitations on revised offers and bids for battery energy storage system owners)

(1)     Replace clause 13.19AB(1) with:

(1)     Subject to subclause (3), a battery energy storage system owner that submits a revised offer or bid under clause 13.19AAA(1)(a), (b), (d), (f), (g) or (h) during a gate closure period must ensure that:

(a)     the MW specified in the revised offer or bid only differs from the original offer or bid to the extent necessary to ensure that the MW specified in the revised offer or bid is the adjusted generation capacity or adjusted consumption capacity, whichever is applicable; and

(b)     the maximum and minimum storage limits specified in the revised offer or bid only differ from the original offer or bid to the extent necessary to ensure that the maximum and minimum storage limits specified in the revised offer or bid are the adjusted maximum storage limit and adjusted minimum storage limit.

(2)     Replace clause 13.19AB(3) with:

(3)     A battery energy storage system owner that submits a revised offer or bid under clause 13.19AAA(1)(a) during a gate closure period, where the bona fide physical reason is a situation where personnel or plant safety is at risk, must reduce the offer or bid only to the extent that it considers reasonably necessary to ensure that, if dispatched, complying with that dispatch does not put personnel or plant safety at risk.

 

62      Clause 13.19A amended (Bids may be revised)

          In clause 13.19A(1E), after “any price band”, insert “or the maximum storage limit”.

 

63      Clause 13.38 amended (Ancillary service agents to submit reserve offers to system operator)

(1)     In clause 13.38(2), after “submitted by an ancillary service agent”, insert “, other than a battery energy storage system owner,”.

(2)     After clause 13.38(2), insert:

(2A)  Each reserve offer submitted by an ancillary service agent that is a battery energy storage system owner under subclause (1) may be for fast instantaneous reserve, sustained instantaneous reserve or both and must contain all the information required by Form 11 in Schedule 13.1.

 

64      Clause 13.44 amended (How quantity is to be specified in reserve offers)

(1)     In clause 13.44(1), after “For each price band, a reserve offer”, insert “submitted by an ancillary service agent that is not a battery energy storage system owner”.

(2)     After clause 13.44(1), insert:

(1A)  For each price band, a reserve offer submitted by an ancillary service agent that is a battery energy storage system owner must specify the quantity of instantaneous reserve offered to respond as fast instantaneous reserve and/or sustained instantaneous reserve—

(a)     as the generation available to be injected for generation reserve; or

(b)     as the demand available to be reduced for interruptible load.

(1B)  For the avoidance of doubt, the battery energy storage system owner does not need to account for the state of charge in determining the generation or demand available under subclause (1A).

 

65      Clause 13.46 amended (Reserve offer may be revised)

In clause 13.46(3), after “an ancillary service agent”, insert “that is not a battery energy storage system owner”.

 

66      Clause 13.58A amended (Inputs for price-responsive schedule and non-response schedule)

(1)     After clause 13.58A(1)(aa), insert:

(ab)   for all battery energy storage system stations:

(i)      the current telemetered reading of the state of charge for that battery energy storage system station; and

(ii)    any additional operational parameters agreed between the battery energy storage system owner and the system operator; and

(2)     After clause 13.58A(2)(aa), insert:

(ab)   for all battery energy storage system stations:

(i)      the current telemetered reading of the state of charge for that battery energy storage system station; and

(ii)    any additional operational parameters agreed between the battery energy storage system owner and the system operator; and

 

67      Clause 13.69B amended (Inputs for dispatch schedule)

(1)     In clause 13.69B(1)(j), replace “.” with “:”.

(2)     After clause 13.69B(1)(j), insert:

(k)     in relation to each battery energy storage system station:

(i)      the current telemetered reading of the state of charge for that battery energy storage system station or, if no such data is available for any reason, a reasonable estimate of the state of charge for that battery energy storage system station; and

(ii)    any additional operational parameters agreed between the battery energy storage system owner and the system operator.

 

68      Clause 13.105A amended (Information to be made available to purchasers, generators, and ancillary service agents)

(1)     In clause 13.105A(1)(c), replace “.” with “; and”.

(2)     After clause 13.105A(1)(c), insert:

(d)     for each battery energy storage system owner that has submitted an offer or bid, information from the current price-responsive schedule and non-response schedule relating to the scheduling of the battery energy storage system owner’s capped offers or capped bids for the trading periods covered in the schedule length period.

 

69      Clause 13.192 amended (Constrained off situations may occur)

In clause 13.192(2)—

(a)          in paragraph (a), after “an offer made by a generator”, insert “(other than a battery energy storage system owner)”; and

(b)         in paragraph (b),

(i)                 after “a bid made by a purchaser”, insert “(other than a battery energy storage system owner)”; and

(ii)              replace “.” with “; and”; and

(c)     after paragraph (b), insert:

(c)     an offer or bid made by a battery energy storage system owner means the last capped offer or capped bid, as the case may be, made by the battery energy storage system owner which applied during the relevant trading period.

 

70      Clause 13.193 amended (Determining affected price bands for block dispatch groups and station dispatch groups)

Replace clause 13.193(2) with:

(2)     In this clause, —

(a)     an offer made by a generator (other than a battery energy storage system owner) means the last offer made by the generator which applied during the relevant trading period:

(b)     an offer made by a battery energy storage system owner means the last capped offer made by the battery energy storage system owner which applied during the relevant trading period.

 

71      Clause 13.194 amended (Clearing manager to calculate constrained off amounts)

(1)     In clause 13.194(2), in the definition of Pb, after “dispatch-capable load station”, insert “or battery energy storage system station”.

(2)     In clause 13.194(3)(b), replace “the ramp rate” with “any ramp rate”.

(3)     In clause 13.194(4)—

(a)     in paragraph (a), after “an offer made by a generator”, insert “(other than a battery energy storage system owner)”; and

(b)     in paragraph (b):

(i)      after “a bid made by a purchaser”, insert “(other than a battery energy storage system owner)”; and

(ii)     replace “.” with “; and”; and

(c)      after paragraph (b), insert:

(c)     an offer or bid made by a battery energy storage system owner means the last capped offer or capped bid, as the case may be, made by the battery energy storage system owner which applied during the relevant trading period.

 

72      Clause 13.204 amended (Calculation of constrained on amounts)

(1)     In clause 13.204(1)(b)(ii), replace “the ramp rate” with “any ramp rate”.

(2)     In clause 13.204(3)—

(a)     in paragraph (a), after “an offer made by a generator”, insert “(other than a battery energy storage system owner)”; and

(b)     in paragraph (b)

(i)      after “a bid made by a purchaser”, insert “(other than a battery energy storage system owner)”; and

(ii)     replace “.” with “; and”; and

(c)      after paragraph (b), insert:

(c)     an offer or bid made by a battery energy storage system owner means the last capped offer or capped bid, as the case may be, made by the battery energy storage system owner which applied during the relevant trading period.

 

73      Schedule 13.1, new forms 10 and 11 inserted

After Schedule 13.1, Form 9, insert new forms 10 and 11 as set out in the Schedule to this amendment.

 

74      Clause 1 of Schedule 13.3 amended

After clause 1(2A) of Schedule 13.3, insert:

(2B)  A price-responsive schedule and non-response schedule must use the predicted state of charge of each battery energy storage system station at the end of the previous trading period as the expected state of charge for the purpose of clause 9A(d).

 

75      Clause 9A of Schedule 13.3 amended

(1)     In clause 9A(b) of Schedule 13.3—

(a)     after “for each generating unit or generating station”, insert “, including a battery energy storage system station,”; and

(b)     after “ramp down rates of the generating unit or generating station,”, insert “if any,”.

(2)     In clause 9A(c)(iv) of Schedule 13.3, replace “:” with “; and”.

(3)     After clause 9A(c) of Schedule 13.3, insert:

(d)     the modelling system schedules electricity generation for each battery energy storage system station in a trading period such that:

(i)      in relation to the dispatch schedule, the level of generation can be maintained for the time remaining in the trading period:

(ii)    in relation to the price-responsive schedule and non-response schedule, the level of generation can be maintained for the trading period:

(iii)    the scheduled quantity of electricity to be generated by the battery energy storage system station does not exceed the maximum of either:

(A)    0, or

(B)    the positive difference between the state of charge at the beginning of the trading period, calculated in accordance with clause 9B, and the minimum storage limit for generation specified in the offer submitted by the battery energy storage system owner for that trading period, adjusted for any BESS loss factors specified in the offer, in MWh; and

(e)     the modelling system schedules electricity generation for each battery energy storage system station offering both generation and generation reserve in a trading period such that:

(i)      in relation to the dispatch schedule, the level of generation can be maintained for the time remaining in the trading period and the level of sustained instantaneous reserves can be maintained for 15 minutes:

(ii)    in relation to the price-responsive schedule and non-response schedule, the level of generation which can be maintained for the trading period and the level of sustained instantaneous reserves can be maintained for 15 minutes:

(iii)    the scheduled quantity of electricity to be generated by the battery energy storage system station does not exceed the maximum of either:

(A)    0, or

(B)    the positive difference between the state of charge at the beginning of the trading period, calculated in accordance with clause 9B, and the minimum storage limit for generation reserve specified in the offer submitted by the battery energy storage system owner for that trading period, adjusted for any BESS loss factors specified in the offer, in MWh.

 

76      New clause 9B of Schedule 13.3 inserted

After clause 9A of Schedule 13.3, insert:

9B State of charge for battery energy storage systems

(1)     For the purposes of clauses 9A and 10, the starting state of charge for a battery energy storage system station for each trading period is to be determined:

(a)     for the purposes of the dispatch schedule, using the current telemetered reading for the state of charge at that battery energy storage system station at the commencement of that dispatch schedule; or

(b)     for the purposes of the non-response schedule and price-responsive schedule, using the current telemetered reading for the state of charge at that battery energy storage system station at the start of the trading period in which the system operator commences preparing the schedule.

(2)     For the purposes of the non-response schedule and price-responsive schedule, the state of charge for a battery energy storage system station at the end of each trading period must be determined accounting for the scheduled generation or consumption during that trading period and the BESS loss factors provided in Form 10.

 

77      Clause 10 of Schedule 13.3 amended

          Replace clause 10 of Schedule 13.3 with:

          The constraint relating to demand for the purpose of clause 9(c) is that—

(a)     for each price band, the modelling system does not schedule electricity demand that would result in the scheduled quantity of demand being greater than:

(i)      the quantity bid by the purchaser for the price band; and

(ii)     either:

(A)    0 or:

(B)    the positive difference between the state of charge at the beginning of the trading period, calculated in accordance with clause 9B, and the maximum storage limit specified in the offer submitted by the battery energy storage system owner for that trading period, adjusted for any BESS loss factors specified in the bid, in MWh; and

(b)     the modelling system schedules electricity consumption for each battery energy storage system station in a trading period such that:

(i)      in relation to the dispatch schedule, the level of consumption can be maintained for the time remaining in the trading period:

(ii)    in relation to the price-responsive schedule and non-response schedule, the level of consumption can be maintained for the trading period.

 

78      Clause 12 of Schedule 13.3 amended

After clause 12(4) of Schedule 13.3, insert:

(4A) The modelling system must not schedule generation reserve at a battery energy storage system station that would result in the scheduled quantity of electricity to be generated plus the scheduled quantity of generation reserve to be provided exceeding the maximum effective reserve capacity of that battery energy storage system station as specified in the reserve offer for that battery energy storage system station.

 

79      Clause 1 of Schedule 13.3B amended

 (1)    In Schedule 13.3B, clause 1, row 38, after “(whichever applies)”, insert “and adjusted so that, for each battery energy storage system station, the total offered quantity is no greater than the total capped offer quantity”.

(2)     In Schedule 13.3B, clause 1, row 39, after “offers from generators”, insert “that are not battery energy storage system owners, and capped offers from battery energy storage system owners,”.

(3)     After Schedule 13.3B, clause 1, row 47, insert:

48

Capped offer and capped bid quantities (in MW) for each battery energy storage system station limited by state of charge constraints

 

X

 

X

 

X

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Schedule

Schedule 13.1, new forms 10 and 11 inserted

 

Form 10

Battery energy storage system owner offer and bid

Date: ___________

Battery Energy Storage System Owner Participant Identifier:  ____________________

Battery Energy Storage System Owner Name:  ________________________________

Grid Injection Point:   _____________

Battery Energy Storage System Station Maximum Output  _________________MW

Trading Period:  ______ Starting at ________ : _______ 0 hours

Battery Energy Storage System Station Minimum Storage Limit (generation): _______MWh

Battery Energy Storage System Station Maximum Storage Limit: _________MWh

Battery Energy Storage System Station Fixed BESS Loss Factor : ______________MWh

Battery Energy Storage System Station Variable BESS Loss Factor (charging): ____MW

Battery Energy Storage System Station Variable BESS Loss Factor (discharging): ___MW

 

Battery energy storage system offer to sell electricity:

Band 1:  From 0 MW to __________ MW @ $ ____________ per MWh

Band 2:                plus ____________ MW @ $ ____________ per MWh

Band 3:                plus ____________ MW @ $ ____________ per MWh

Band 4:                plus ____________ MW @ $ ____________ per MWh

Band 5:                plus ____________ MW @ $ ____________ per MWh

Band 6:                plus ____________ MW @ $ ____________ per MWh

Band 7:                plus ____________ MW @ $ ____________ per MWh

Band 8:                plus ____________ MW @ $ ____________ per MWh

Band 9:                plus ____________ MW @ $ ____________ per MWh

Band 10:              plus ____________ MW @ $ ____________ per MWh

 

Battery energy storage system bid to purchase electricity

Band 1:  From 0 MW to __________ MW @ $ ____________ per MWh

Band 2:                plus ____________ MW @ $ ____________ per MWh

Band 3:                plus ____________ MW @ $ ____________ per MWh

Band 4:                plus ____________ MW @ $ ____________ per MWh

Band 5:                plus ____________ MW @ $ ____________ per MWh

Band 6:                plus ____________ MW @ $ ____________ per MWh

Band 7:                plus ____________ MW @ $ ____________ per MWh

Band 8:                plus ____________ MW @ $ ____________ per MWh

Band 9:                plus ____________ MW @ $ ____________ per MWh

Band 10:              plus ____________ MW @ $ ____________ per MWh

 

 

Form 11

Battery energy storage system owner instantaneous reserve offer

Date: __________________________________

Ancillary Service Agent:  ____________________________________________

Battery Energy Storage System Station Name:   ________________________________

Grid Injection Point:   _____________________________

Trading Period:   ______________ Starting at _____________________ 0 hours

 

Instantaneous reserve capability

Holds a Reserve Contract with the System Operator                              ¨ Yes

Fast Instantaneous Reserve Interruptible Load Available                       ¨ Yes

Sustained Instantaneous Reserve Interruptible Load Available              ¨ Yes

Trading Period:   ___________ Starting at __________ : ____________ 0 hours

Battery Energy Storage System Station Minimum Storage Limit (generation reserve): ___MWh

 

Offer to provide reserve

1            Generation reserve

Band 1:

Up to a maximum of _____ MW @ $ _______ per MW as Fast Instantaneous Reserve

Up to a maximum of _____  MW @ $ _______ per MW as Sustained Instantaneous Reserve

Band 2:

Up to a maximum of _____ MW @ $ _______ per MW as Fast Instantaneous Reserve

Up to a maximum of _____ MW @ $ _______ per MW as Sustained Instantaneous Reserve

Band 3:

Up to a maximum of _____ MW @ $ _______ per MW as Fast Instantaneous Reserve

Up to a maximum of _____ MW @ $ _______ per MW as Sustained Instantaneous Reserve

 

2      Interruptible load

Band 1:

Up to a maximum of _____ MW @ $ _______ per MW as Fast Instantaneous Reserve

Up to a maximum of _____MW @ $ ___ per MW as Sustained Instantaneous Reserve

Band 2:

Up to a maximum of _____ MW @ $ _______ per MW as Fast Instantaneous Reserve

Up to a maximum of _____ MW @ $ ________ per MW as Sustained Instantaneous Reserve

Band 3:

Up to a maximum of _____ MW @ $ ______ per MW as Fast Instantaneous Reserve

Up to a maximum of _____ MW @ $ ______ per MW as Sustained Instantaneous Reserve

 

 

 

 

 

Made at Wellington on 28 September 2026

 

 

 

 

JOHN HARBORD

Chair

Electricity Authority

 

 

Certified in order for signature:

 

 

 

Tiffany Matsis

Senior Legal Counsel

Electricity Authority

25 September 2026

 

 

 

Rachael Brown

Partner

Bell Gully

25 September 2026

 

 

 

 

Explanatory Note

 

This note is not part of the amendment but is intended to indicate its general effect.

 

This amendment to the Electricity Industry Participation Code 2010 comes into force on 30 October 2026.

 

The amendment amends Parts 1, 8, 13 and 15 of the Code to improve wholesale market arrangements for utility-scale battery energy storage systems (BESS) by:

 

a.       requiring BESS to be dispatchable while consuming as well as while generating;

b.      as an interim measure, allowing BESS owners to trade based on the expected capability of the BESS station and update offer and bid quantities after gate closure if that expected capability changes;

c.       as part of the final phase of the amendment (to come into effect on 31 March 2028), allowing BESS owners to trade their full capacity, with state of charge constraints acting to limit consumption and generation to what is achievable given the level of stored energy in the BESS station; and

d.      as part of the final phase of the amendment, requiring BESS owners to submit offers and bids using a single trade form and receive a single dispatch for their BESS station.

 

 

 

 

 

This is secondary legislation issued under the authority of the Legislation Act 2019.

Title

Electricity Industry Participation Code (Wholesale market arrangements for battery energy storage systems) Amendment 2026

Instrument ID

 

Empowering provisions

Electricity Industry Act 2010, section 38

Date made

28 September 2026

Date as at

Not applicable

Date of publication

30 September 2026

Administering agency

Electricity Authority