Development: Decision to implement improvements to transmission loss modelling
The Authority considers that more accurate modelling of transmission losses when dispatching and pricing generation in the wholesale market would promote its statutory objective as it would allow the system operator to more accurately determine the cheapest generation options. This will increase competition between generators and operational efficiency in the electricity industry, for the long-term benefit of consumers.
The increased modelling accuracy will be the result of the Authority’s decision to increase the number of segments used by the system operator to estimate losses on AC transmission lines.
Stress test scenarios unchanged for the April – June 2015 quarter
The stress test scenarios previously published on the Authority's website will apply for the April – June 2015 quarter.
There is no change from the previous quarter.
The stress-testing regime requires certain participants in the wholesale electricity market to apply a set of standard stress tests to their market position, and report the results to their Board and to NZX as the independent registrar appointed by the Authority.
Questions about the stress tests can be directed to info@ea.govt.nz. Please include 'Stress test' in the subject line.
Discontinued investigation into disconnection of faulty asset
Between 5 June and 18 July 2014, the grid owner failed to ensure that the protection system at the Greytown substation disconnected a faulty asset in the minimum practical time and with minimum disruption to other assets. The Compliance Committee decided to discontinue the investigation.
Investigator appointed: Alleged breaches by Alpine Energy Limited
The Authority has begun an investigation of a number of breaches alleged of Alpine Energy Limited (Alpine) concerning the connection of solar generation. The alleged breaches of Part 6 of the Code include failing to make certain information publicly available, failing to grant approval to connect distributed generation that complied with Alpine’s connection and operation standards, failing to notify the distributed generation applicant within the timeframes required in the Code, declining applications without providing the required information, and forcing the adoption of unsafe installation practices by its assessment of what was “reasonable and prudent operating practice”.
Investigation of alleged breach by Transpower New Zealand Limited as the system operator
The Authority has begun an investigation into a self-reported breach of the Electricity Industry Participation Code 2010 by Transpower New Zealand Limited as the system operator. On 28 August 2014, the system operator, in adjusting the dispatch schedule, failed to incorporate an anticipated demand change for a potline offload at the Tiwai Point aluminium smelter (Tiwai). The real-time dispatch solved for a South Island load forecast that was 190 MW too high and resulted in the system operator unnecessarily dispatching generators in both the North Island and the South Island. On issuing the dispatch instructions, the system operator immediately identified that the pre-solve deviation had not been applied to the South Island load. The system operator then applied a pre-solve deviation for the Tiwai load reduction and issued new dispatch instructions within 2 minutes of the original incorrect dispatch. Affected parties may join the investigation.
Information plays an important part in building market confidence and strength.
To assist interested parties in tracking market development, the Authority publishes NZ electricity hedge contracts as a standard section of its weekly Market Brief.
