Our projects
System security and resilience

Managing peak winter electricity demand

Driving efficient solutions to promote consumer interests through winter 2023.

  • Generation

    • Overview

    The Electricity Authority is preparing for winter 2023 and the potentially challenging situations that may lead to strains in New Zealand's electricity system.

    In 2022, we consulted on 11 options to better manage risks to electricity supply during peak demand periods in winter 2023. We have decided to:

    • implement Option A: Provide better information on headroom in supply stack.
    • implement Option B: Provide forecast spot prices under demand sensitivity cases
    • implement Option D: System operator review of wind offers based on external forecast
    • implement Option E: Clarify availability and use of ‘discretionary demand’ control (such as ripple control)
    • not progress Option G: Selectively increase existing ancillary service cover at times to offset increased uncertainty in net demand.

    Find out more:

    Timeline

    Coming up

    • Winter 2023

      Implementation —

      Option A: Provide better information headroom in supply stack. Option A is live in WITS

      Option B: Provide forecast spot prices under demand sensitivity cases. Option B is live in WITS

      Option D: System operator review of wind offers based on external forecast. Option D is live via EMS

      Option E: Clarify availability and use of 'discretionary demand' control

    Past activity

    Project background

    The Electricity Authority is dedicated to making market improvements to enhance the reliability of New Zealand’s electricity system. We have concerns that some electricity generation isn’t available at peak times during winter.

    Since mid-2021 there has been an increase in the number of trading periods where the available electricity supply is tight, relative to the expected demand and normal reserve requirements. A key reason for this is the increased role of intermittent generation and the growing cost of gas, coal and carbon emissions. This project looks at how to better manage residual supply risk in winter 2023.