✨ Grid Reliability Standards and Investment
3622 NEW ZEALAND GAZETTE, No. 123 30 OCTOBER 2006
87A
Except where urgency is required for individual projects, any grid upgrade plan submitted by Transpower should be as comprehensive as possible, ideally covering and identifying the relationships among short, medium and longer term proposals. This will better enable consideration of the interrelationships between projects and the wider synergies from the grid, including facilitating renewables, least-cost provision of new generation and increased competition between generators. It will also enable consideration and approval of investment proposals for the grid as a whole over an appropriate timeframe (for example, five years) within a longer term framework.
87B
The grid upgrade plan should also be consistent with statement of opportunity forecasts and wider government energy policy including applicable policies on renewable generation and climate change.
87C
Grid upgrade plans should demonstrate the rationale for all expenditure (operation, maintenance and capital), taking into account the prescribed reliability standards and good industry practice for power system operation. The plans should demonstrate that the proposed expenditure is required to meet reliability standards and/or deliver the greatest net benefit after taking into account transmission alternatives and government energy policy requirements.
87D
In the development of grid upgrade plans; the Government’s objective is that:
• Transpower should undertake the detailed planning role (including the assessment of both transmission and non transmission alternatives); and
• the Electricity Commission should review and approve grid upgrade plans that meet the criteria set out in the Electricity Governance Rules and reject applications that fail them.
87E
The Electricity Commission should make available to Transpower and other stakeholders clear and specific criteria on how grid upgrade plans in general and any particular plan specifically will be reviewed and approved or rejected. These criteria should be clearly explained so that a review process can be understood and replicated by stakeholders.
87F
The Electricity Commission should ensure that affected parties are fully consulted on grid upgrade plans.
87FF
Transpower should be able to seek a determination from the Electricity Commission on updated grid upgrade plans in response to events that significantly affect any capital investment already approved under a grid upgrade plan.
87G
In developing and considering grid upgrade plans, Transpower and the Electricity Commission should seek to maintain business confidence by making it clear that adequate grid reliability will be maintained.
88
Where the Electricity Commission approves a grid upgrade plan, the full costs associated with implementing the grid upgrade plan should be recoverable by Transpower in accordance with the pricing methodology determined by the Electricity Commission.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 123
Gazette.govt.nz —
NZ Gazette 2006, No 123
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Grid Reliability Standards and Investment
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🏛️ Governance & Central AdministrationGrid Reliability, Investment, Transmission Network, Standards, Electricity Commission