We have made the following changes to our 2015/16 work programme:
Offer and dispatch: Intermittent generation offers
This project will review the offer and dispatch Code provisions for intermittent (wind) generators. In particular, our review will consider whether intermittent generators should be able to deliberately decrease their generation offered with little or no notice to the system operator. The review will also consider whether wind generators should be able to offer at a price above $0.01/MWh. This project has been added to the work programme.
Part 6 (distributed generation pricing principles)
This project will investigate whether the distributed generation pricing principles, which are provided through Part 6 of the Code, are achieving outcomes that are consistent with our statutory objective. In particular, the project will investigate whether the principles are preventing distributors charging distributed generators on a cost reflective basis.
This is an existing project on the 2015/16 work programme. We are advancing the project sooner than intended following feedback from participants, provided through the review of transmission pricing. Participants indicated that they would appreciate greater clarity about issues associated with the distributed generation pricing principles and potential changes to the principles, including any changes that may be made that affect avoided costs of transmission (ACOT) payments. We plan to release a consultation paper on the matter by the end of the 2015 calendar year.
Project pages for both projects will be available on our website shortly.
Decision on the HVDC component of Transpower’s Transmission Pricing Methodology (TPM) operational review
We have decided to amend the TPM to change the way that the charges for the costs of the inter-island High Voltage Direct Current (HVDC) link are calculated.
As a result of the change, Transpower will recover the HVDC charges from South Island generators in proportion to the total amount of energy they inject into the national grid averaged over a multi-year period, on a MWh basis.
There will be a four-year transition period from the current way that HVDC charges are calculated. The amendment arises out of Transpower’s operational review of the TPM.
The new arrangements will promote the efficiency and reliability limbs of our statutory objective by addressing the incentive, under the current HVDC charge, for South Island generators to limit their maximum output, even when supply is tight in the market.
After consultation with Transpower, we have decided that the proposed changes will take effect from 1 April 2017, ie, for the calculation of prices for the 2017/18 pricing year and subsequent pricing years. As the capacity measurement period for the 2017/18 pricing year begins on 1 September 2015, this means that participants will need to take into account the impact of the change from 1 September 2015.
The decisions and reasons paper, and a summary of submissions document, is provided on our website.
Investigator appointed for self-reported breach by Transpower New Zealand Limited
We have begun an investigation of a self-reported breach by Transpower New Zealand Limited as the grid owner. The breach concerns protection settings unnecessarily tripping Mangahao transformer T4, causing a loss of supply and disconnection of generation at Mangahao.
Settlement approved from investigation into the system operator incorrectly modelling reserve requirements
We have approved a settlement between Transpower New Zealand Limited as the system operator, Meridian Energy Limited and Contact Energy Limited. The settlement resulted from an investigation into the system operator incorrectly modelling reserve requirements on three occasions.
We are proposing to amend the Electricity Industry Participation Code 2010 (Code) to add dynamic voltage performance standards for generation. The proposed amendments would require generation owners to ensure their assets remain stable and connected to the grid during transient voltage disturbances. We expect these changes would assist the system operator to continue meeting its principal performance obligation to avoid cascade failure. The proposed amendments would contribute to the reliable supply of electricity to consumers by reducing the risk of consumer loss of supply caused by generators disconnecting from the grid during disturbances.
We have published a consultation paper and submissions close at 5 pm on Tuesday, 6 October 2015.
With the ongoing high level of activity due to metering compliance upgrades and smart meter (AMI) rollouts, we have issued a memo reminding participants to update the registry within the required timeframes. We also note that the timeframes are a maximum, not a target. All participants benefit if the registry is updated as soon as information becomes available.
