✨ Electricity Security of Supply
30 OCTOBER 2006 NEW ZEALAND GAZETTE, No. 123 3613
Security of supply
Background
35
A key priority of the Government is to improve security of electricity supply. Shortage risks occurred in 2001 and 2003, resulting in sustained high spot prices and the need for emergency conservation campaigns. This has caused inconvenience and disruption, and may have affected the attractiveness of New Zealand for business investment, especially for sectors using relatively large quantities of electricity. In the Government’s view, security of supply is vital to achieving its objective of sustainable economic development.
36
Key components of security of supply are that:
• Sufficient generation capacity is built or energy efficiency improvements made to meet ongoing demand growth
• Hydro and thermal generating capacity and fuels are appropriately managed, to deal with the risks of extended dry hydro periods better than we have in the past
• The system has sufficient reserve energy (plant and fuel, or contracted demand response) to cope with extreme dry sequences or other unexpected supply disruptions
• The national grid and distribution lines meet specified reliability objectives. (Transmission and distribution issues are covered in separate sections).
Security of supply objective for the Electricity Commission
37
A function of the Electricity Commission under the Electricity Act 1992 is to use reasonable endeavours to ensure security of supply, without assuming any demand reduction from emergency conservation campaigns, while minimising distortions to the normal operation of the electricity market. In particular, the Government wants the Commission to use reasonable endeavours to ensure security of supply in a 1 in 60 dry year. The Commission should also work with stakeholders to identify industry contingencies and develop strategies consistent with the operation of the electricity market to achieve its security of supply objectives.
Information, modelling and forecasting
38
The Commission should undertake and publish detailed supply and demand modelling and forecasting at least annually. The objective is to provide well-researched information on short and long term security of supply, including likely availabilities of fuels, new generation options, and likely price trends under various scenarios.
39
The Commission should ensure that public information is provided on:
• thermal fuel availability
• hydro lake levels
• hydro spill
• generation capacity.
Next Page →
Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 123
Gazette.govt.nz —
NZ Gazette 2006, No 123
✨ LLM interpretation of page content
🏛️
Security of Supply Objectives for the Electricity Commission
(continued from previous page)
🏛️ Governance & Central AdministrationElectricity, Security of Supply, Generation Capacity, Energy Efficiency, Hydro Management, Thermal Fuels, Reserve Energy, Dry Year Risks, National Grid, Reliability Objectives, Modelling, Forecasting, Fuel Availability, Hydro Lake Levels, Hydro Spill, Generation Capacity