Future System Operation project - update and next steps

Following consideration of feedback, engagement with submitters and additional analysis, the Electricity Authority Te Mana Hiko has revised the next steps of its Future System Operation project.

We originally intended to publish a decision paper in the first half of 2026 confirming the distribution system operation (DSO) model for the New Zealand power system following our consultation The future operation of New Zealand’s power system: Issues and high-level options.

However, we now believe the most appropriate next step is a cross-agency FSO roadmap to support sector progress on developing DSO capabilities and functions.

The development of the roadmap will include links to Authority workstreams such as decentralisation, digitalisation and network visibility. We will also engage with industry, including the Future Networks Forum, and with other government agencies. We aim to publish the roadmap in the first half of 2026.

Our consultation highlighted strong support for the hybrid DSO model where coordination of real-time dispatch is shared between the transmission system operator (TSO) and one or more distributors-as-DSOs. However, it also became apparent that there is value in keeping options open at this stage, as opposed to endorsing one particular DSO model.