✨ Electricity Supply Security Guidelines
1726 NEW ZEALAND GAZETTE, No. 75 27 MAY 2009
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The Commission should also develop and set security standards for adequacy of capacity to meet peak demand.
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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
- 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.
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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.
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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
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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.
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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.
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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.
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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.
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NZ Gazette 2009, No 75
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Security of Electricity Supply Requirements
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🏭 Trade, Customs & IndustryElectricity, Security, Supply, Capacity, Peak Demand, Contingencies, Policy, Forecasting, Monitoring, Market