System security and resilience
Risk of thermal plant closures
This project investigates the implications of major thermal retirement decisions.
Overview
We're investigating the risks associated with the premature retirement of thermal generation plants. This includes the risks of not investing in new thermal plants during the transition to a renewable power system.
We will release an issues paper for consultation in 2023. This paper will explore the risk profile of premature retirement, or delayed new investment, and high level options to mitigate these risks.
Timeline
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November 2022
Work commissioned —Identification of the risks of thermal plant closures
Project background
In 2022, we commissioned work into the operational and investment risks with thermal transition. The operational risks were also examined as part of our project to manage peak winter electricity demand.
Flexibility in the New Zealand power system has traditionally been provided by hydro and fossil-fuelled thermal generation. As renewable generation increases, the role of thermal generation will decrease. Understanding the risks of thermal transition is a key project in our energy transition roadmap.
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