New Zealand Gazette – 2008 – No. 92

Page 2480

✨ Electricity Supply Security Policy



2480 NEW ZEALAND GAZETTE, No. 92 4 JUNE 2008

  1. The Commission should also develop and set security standards for adequacy of
    capacity to meet peak demand.

  2. The Commission should work with stakeholders to identify industry contingencies,
    and develop strategies consistent with the operation of the electricity market to
    manage supply and demand during such contingencies.

Security of supply policy

  1. The Commission should have, and publish, a security of supply policy. The security
    of supply policy should include:

• the information and forecasts to be made available
• details of how the Commission will monitor energy margins during the year
and whether the market will deliver adequate new capacity
• the procurement and utilisation policies for reserve energy
• the steps that the Commission will take at various stages during a contingent
event such as an extended dry sequence, and the emergence of risks relating
to peak capacity.

  1. The objective of publishing the policy is to provide a high degree of certainty to
    market participants about how the Commission intends to meet its security of
    supply objectives.

  2. The Commission should have, and publish, protocols to manage potential conflicts
    between its roles as a contractor for reserve energy and as a regulator.

Information, forecasting and monitoring

  1. 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 both short-term and long-term security of supply,
    including the likely availabilities of fuels and new generation options under various
    scenarios.

  2. To establish the need for additional reserve energy (see below), the Commission
    should look out 3 to 5 years (given consent and construction timelines for new
    capacity), collect information, develop a baseline that makes assumptions about
    which known projects are likely to proceed, and identify any "shortfalls" year by
    year.

  3. The Commission is expected to be active in monitoring resource availability to meet
    demand and, in particular, determining whether the market is consistently failing to
    deliver new capacity sufficient for an adequate energy margin and to meet peak
    demand.

  4. If the Commission determines that the market is consistently failing to deliver
    sufficient capacity, it should use the powers available to it to make
    recommendations to the Minister on any arrangements or policies that it considers
    necessary to provide better outcomes.



Next Page →



Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2008, No 92


Gazette.govt.nz — PDF NZ Gazette 2008, No 92




✨ LLM interpretation of page content

🏭 Security of electricity supply policy (continued from previous page)

🏭 Trade, Customs & Industry
Electricity, security of supply, policy, capacity adequacy, demand management, contingencies, forecasting, monitoring