Three winter 2023 options to be retained

The Electricity Authority Te Mana Hiko (Authority) has decided to retain the winter 2023 options A, B and D for winter 2024 and beyond.

The decision follows an evaluation of how the options performed in winter 2023, supported by discussions with the system operator.

Our evaluation found these options performed well, are relatively low cost, and can easily be modified for future development.

The options provide:

• better information on headroom in the supply stack (Option A)
• forecast spot prices under demand sensitivity cases (Option B)
• the system operator to review wind offers based on external forecast (Option D)

Options A, B and D were implemented ahead of winter 2023 to improve market information and incentives.

The Authority will work with the system operator and relevant service providers to support permanent implementation. This is likely to include improvements to how information is displayed, and more significant longer-term enhancements.

We welcome any suggestions for potential enhancements to these options to operationsconsult@ea.govt.nz.

As part of our winter 2023 work programme, Option E: Clarify availability and use of ‘discretionary demand’ control, was implemented through an urgent Code amendment. We will soon consult on a proposed Code amendment to make this option permanent.

Recent experience has shown that the coordination of resources during peak winter demand periods has proved more challenging than in the past. We expect these challenges to persist over the coming years and have work underway to help address these challenges.

We are dedicated to making improvements to enhance the reliability of New Zealand’s electricity system. We encourage participants to submit on our upcoming consultation paper on making Option E permanent.