Managing peak electricity demand

Improving incentives for long-duration firming

Upcoming Open Closed Decision
Make a submission Due by 13 November 2026
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Consultation

We're seeking feedback on whether and how we could strengthen market settings to support the efficient supply of long-duration firm (LDF) energy.

New Zealand’s reliance on renewables, and particularly on hydro generation systems with limited storage, makes us vulnerable to extended periods when it does not rain, blow or shine. Long duration firming refers to reliable and dispatchable energy that can fill these supply gaps for weeks or months at a time.

We commissioned the consulting firm Sapere to explore how demand for additional long-duration firm energy is expected to evolve over time, including the impact of severe dry years on annual energy balances.

The Authority has identified the following options to improve price signals and incentives to invest in long-duration firming:

  1. Regular reporting on the long-duration firm energy gap using an established methodology
  2. Enhanced disclosure obligations for firming contracts
  3. Building blocks for negotiating firming contracts
  4. Co-development of a long-duration firming contract, including potential standardisation
  5. Mandated sell-side auction of a small amount of firming contracts

We're seeking feedback from stakeholders on the barriers that we have identified to the provision of long-duration firming and the options to address these barriers.

Issues and options paper

Improving incentives for long-duration firming - Issues and options paper

Make a submission

We welcome submissions in Microsoft Word in the format shown in Appendix A.

Submissions should be emailed to wholesaleconsultation@ea.govt.nz with ‘Consultation - long-duration firming’ in the subject line by 5pm, 13 November 2026.

If you cannot send your submission electronically, please email wholesaleconsultation@ea.govt.nz or call 04 460 8860 to discuss alternative arrangements.

Please note, we intend to publish all submissions we receive. If you consider we should not publish any part of your submission, please:

  • indicate which part should not be published and explain why, and
  • provide a version we can publish (if we agree not to publish your full feedback).

If you indicate part of your submission should not be published, we will discuss this with you before deciding whether to not publish that part of your submission.

All feedback, including any parts the Authority does not proactively publish, can be requested under the Official Information Act 1982.