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Distributed energy resources integration and investment

Updating regulatory settings for distribution networks

Improving competition and innovation on distribution networks to support a low-emissions economy.

  • Distribution

    • Overview

    We’re looking at how to improve the regulatory settings for distribution networks to better support the electricity sector’s transition to a low-emissions economy.

    Non-network solutions, such as demand management, distributed generation and distributed energy resources, can both unlock new possibilities in reducing peak demand and help to save on future grid and network investment.

    We have just consulted on how regulatory settings can support distribution networks with the uptake of non-network solutions and flexibility services. We will publish the submissions, a summary of submissions and our decision paper next.

    Timeline

    Coming up

    • April/June

      Consultation —

      Release of a summary of submissions on our January/February 2023 consultation

    • July/August

      Decision —

      Release of a decision paper setting out our medium-term work programme

    Past activity

    Project background

    Distribution networks provide the critical local infrastructure that connects electricity users with the national grid. These systems are vast and need to deliver electricity reliably and efficiently to all electricity users.

    As New Zealand transitions to a low-emissions economy, electrification of transport and process heat will create a substantial increase in electricity demand which distribution networks will need to meet. Technological change means more solar panels, electric vehicles and batteries will be connected, creating both new challenges and opportunities for distribution networks.

    The regulatory settings that govern the distribution network need to be at their optimum to ensure that challenges can be met, and opportunities taken advantage of, to encourage and enable distribution networks to support the low-emissions economy transition at the lowest possible cost to consumers.

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