Dispatchable demand pilot
We're providing enhanced regulatory support to Simply Energy's dispatchable demand pilot as part of the Power Innovation Pathway.
Simply Energy
Unlocking the value of dispatchable demand
Simply Energy is leading a pilot to explore dispatchable demand and how to increase participation in the mechanism, or one similar, that delivers value to both electricity consumers and the electricity market.
Shaping the future of industrial demand response
New Zealand's electricity market currently operates with no load participants in dispatchable demand, one of the market mechanisms designed for demand-side participation. As a result, consumer responses to price signals can be reactive and uncoordinated, leading to less accurate price forecasts, increased real-time wholesale price volatility and ultimately, reduced efficiency.
Simple Energy's dispatchable demand pilot aims to launch a minimum viable product before winter 2026. The project will ‘learn by doing’ to build the tools, processes, and systems needed for reliable demand response. It aims to empower industrial consumers to actively participate in, and benefit from, the electricity market and themselves, to support security of supply.
Flexibility
About Simply Energy
As an energy retailer and solutions provider focused solely on commercial and industrial consumers, Simply Energy believes consumers should play an active role in the electricity system and is working hard to enable that.
Power Innovation Pathway support
The Electricity Authority is supporting this initiative to unlock industrial demand flexibility and enable a more resilient and affordable electricity system for the benefit of consumers.
Providing regulatory support
Large industrial consumers who could offer valuable flexibility often avoid active participation in the market due to challenges. For example, complex metering requirements and System Operator integration audits, alongside operational concerns associated with notice periods and ramp rates.
The Electricity Authority is providing regulatory support to clarify compliance requirements related to this initiative and other barriers.
Informing the Authority’s work programme
Experts from the Authority’s Operations Policy team and Energy Competition Task Force are supporting the scoping of this dispatchable demand pilot.
The lessons learned will shape future electricity market rules, including in our rewarding industrial demand flexibility and dispatchable demand work.