Energy Competition Task Force

Entrant generators – context, headwinds and options for power purchase agreements

Upcoming Open Closed Decision
View submissions Submissions closed 28 February 2025
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Update

After considering feedback on the working paper we released in early 2025, our view is that:

  • access to firming is a key issue affecting investment in new power generation projects
  • a proposal to allocate firming for PPAs for new renewable generation is not the best way to address this issue.

Our update paper Enabling new generation entry – options for PPAs responds to submissions which largely agreed that firming for PPAs was an issue, but did not generally support allocating minimum volumes of flexible generation for firming PPAs in response.

The Authority is now looking to address the underlying issue of firming for new intermittent generation through the Task Force’s proposed level playing field measures (particularly the options around non-discrimination obligations), standardised flexibility products as well as complementary initiatives to encourage PPAs which will enable new investment without the risks associated with allocation.

Update paper

Enabling new generation entry – Options for power purchase agreements – Update paper

Enabling new generation entry – Options for power purchase agreements – Update paper

Consultation

We would like to thank all those who engaged with this consultation that sought feedback on our working paper Entrant generators – context, headwinds and options for power purchase agreements. It examines what the Electricity Authority Te Mana Hiko could do to improve settings in relation to power purchase agreements (PPAs).

This is one of the eight initiatives being considered by the Energy Competition Task Force, which was jointly established with the Commerce Commission in August 2024 to investigate ways to strengthen the electricity market in the short to medium term.

The paper provides a snapshot of our emerging thinking on Task Force initiative 1A, which “consider[s] requiring gentailers to offer firming for Power Purchase Agreements.”

The paper covers some of the opportunities and challenges facing the PPA market in New Zealand, as well as some options to support PPAs to encourage more and faster investment in new generation.

Consultation paper

Working paper: Entrant generators – context, headwinds and options for power purchase agreements

Working paper: Entrant generators – context, headwinds and options for power purchase agreements

Webinar

We hosted a webinar on 18 February 2025 to provide more detail on the issues and options from the recently released working paper which aims to improve settings in relation to PPAs. You can watch the recording online, view the presentation slides and read through the Q+As.

Submissions

Download all submissions (.zip)