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System security and resilience

Unlocking the benefits of battery energy storage systems

We’re working to ensure we have the right regulatory settings in place to unlock the benefits of battery energy storage systems.

  • Wholesale

    • Overview

    We sought feedback on two consultations to support the growing role of battery energy storage systems in New Zealand’s power system.

    In May 2026, we also released a discussion paper on the costs and benefits of moving to a five-minute settlement period. We considered whether incurring the cost of better aligning the settlement period with the capabilities of fast-responding technologies such as BESSs is warranted by the system conditions observed in the New Zealand market. We also considered whether this would provide a net benefit to consumers. The Authority’s current view is that market conditions do not support a transition to five-minute settlement at this stage.

    Timeline

    Past activity

    Background

    Battery energy storage systems (BESS) are becoming increasingly important as New Zealand transitions to a more intermittent and variable 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. While BESSs offer benefits, they can also present challenges for network operators if not managed properly.

    We’re working to ensure we have the right regulatory settings in place to unlock the benefits of BESS and manage any challenges they may present to our power system. Our work programme for the next two years is set out in our BESS roadmap.

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