Unlocking the benefits of battery energy storage systems

5-minute settlement period discussion paper

Upcoming Open Closed Decision
View submissions Submissions closed 30 June 2026
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Overview

We released a 5-minute settlement discussion paper on the costs and benefits of moving to a five-minute settlement period. The paper considered whether this change would better align settlement with the capabilities of fast‑responding technologies, such as battery energy storage systems. The Authority’s current view is that market conditions do not support a transition to a five‑minute settlement at this stage.

Although this discussion paper was not a formal consultation, we welcomed feedback to inform the next phase of our work.

Thanks to all those who provided feedback. The feedback received is published below.

Discussion paper

5-minute settlement discussion paper

5-minute settlement discussion paper

Could Kiwi consumers benefit from 5-minute settlement?

Related consultations

We encouraged interested parties to consider the following related consultations on battery energy storage systems (BESSs) when providing feedback.

Common quality and wholesale market arrangements for BESSs and BESS-hybrid stations

We presented issues and options in this paper related to:

  • Part 8 common quality requirements for BESS-hybrid stations and idle BESSs
  • Part 8 common quality requirements for voltage support obligations for transmission-connected generation, including potential to move the point of compliance to the network connection point
  • Part 13 trading arrangements for BESS-hybrid stations

View consultation

Wholesale market arrangements for battery energy storage systems: Code amendment consultation

We sought feedback on a proposal to amend the Electricity Industry Participation Code to improve wholesale market operations for utility-scale (BESSs).

BESSs can play a critical role in maintaining security and resilience, especially as New Zealand transitions to a more variable power system. They can help balance intermittent generation from solar and wind, support efficient investment, and reduce electricity prices for all consumers. To unlock these benefits, regulatory settings governing BESSs must be fit for purpose.

View consultation

Submissions

Download all submissions (.zip)