Regulatory roadmap for battery energy storage systems

Battery energy storage systems (BESS) are becoming increasingly important as New Zealand transitions to a more intermittent and variable renewables-based power system.

During this transition, BESS will provide opportunities to enhance the resilience of the power system. As well as improving energy security, they also offer financial opportunities for consumers. They enable them to be active participants in the power system by providing demand response or by selling electricity during high-price periods. While BESS offer benefits, they can pose challenges for network operators if not managed properly.

We need to ensure we have the right settings to unlock the benefits of BESS while also managing the challenges they bring, as this will affect all aspects of the power system. This will require a collaborative effort across the electricity sector, including regulators and industry bodies.

We have developed a regulatory roadmap that sets out the BESS-related work we are doing over the next two years.

This consultation sought feedback on this roadmap, and identifying potential gaps or work we should reprioritise.

Thanks to all those who provided feedback. We will publish submissions soon.