Roadmap for distribution system operation published

The Electricity Authority Te Mana Hiko (Authority) has published a roadmap for distribution system operation in New Zealand.

The roadmap describes work that is either planned or underway by the Authority and others in the sector to accelerate the development of distribution system operator (DSO) functions and capabilities.

The Authority decided to develop a roadmap late last year after considering feedback on three potential DSO models and carrying out additional analysis. That followed an earlier issues paper on the future of system operation in New Zealand.

The DSO roadmap focuses on developing the capability of distributors, the system operator, retailers, and flexibility service providers, to perform DSO functions.

A key DSO function relates to better coordination of consumer energy resources connected to the distribution networks, including rooftop solar, electric vehicles, hot water cylinders and batteries. Better coordination will mean consumers can use these resources more efficiently to reduce their electricity costs and be more resilient.

Some distributors are experimenting with DSO pilots, and the roadmap sets out a critical path of work on various objectives that need to be achieved for these pilots to become full-scale DSOs over the next five years. The objectives are improved visibility of network constraints, establishing system interoperability, standardising flexibility market operation, and the safeguarding of data sharing, cyber security, and competition.

In mid-2027 the Authority intends to assess the development of DSOs and consider what, if any, regulatory intervention is required.