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27 July 2021
Welcome to Market Brief, the Electricity Authority’s weekly update on regulatory and market developments.

Contents

Improving competition and innovation on distribution networks - discussion document released

Distribution networks have an important role to play in supporting New Zealand’s transition to a low-emissions economy. 

As the country transitions, electrification of transport and process heat will create a substantial increase in electricity demand going through distribution networks. 

Consumers will use more distributed energy resources (DER) and there will be more connections to the grid. A cost benefit analysis conducted by Sapere estimated the potential benefits for DER to be around $7 billion over the next 30 years.

The Authority is looking at a range of potential issues on distribution networks and potential regulatory options that may be needed to support New Zealand’s transition to a low-emissions economy and ensure long-term benefits to consumers.

The Authority has released a discussion document today 'Updating the Regulatory Settings for Distribution Networks', and wants to talk with as many participants as possible to gain better clarity around the issues identified in the paper. 

To arrange a meeting directly with the project team, or to register your interest in attending a workshop, please email distribution.feedback@ea.govt.nz

After assessing all stakeholder feedback, specific options will be assessed in detail and a preferred option will be identified and released for consultation.

You can read the associated media release on our website.

The feedback period for the discussion document closes at 5pm on Tuesday, 14 September.
Read more

Distribution network hosting capacity included in the Code

Household consumers are increasingly becoming interested in installing distributed energy resources (DER) in or on their homes. These typically include rooftop solar panels and storage battery systems. These systems provide consumers with a degree of self-supply from renewable energy sources.

Although New Zealand currently has low levels of distributed generation, other countries, such as Australia, have achieved much higher levels and have experienced technical network problems associated with connecting more distributed generation. 

Following a comprehensive review involving multiple consultations with interested parties, the Authority has decided to amend the Electricity Industry Participation Code 2010 (Code), to include hosting capacity requirements that will apply for a 5-year period. 

The new requirements will come into effect on 1 September 2021 and will automatically cease on 1 September 2026.

This Code amendment is part of the Authority’s wider programme of work on updating the regulatory settings for distribution networks to better support the electricity sector’s transition to a low-emissions economy, while continuing to provide long-term benefits to consumers.
Read more

Improving the framework for the Authority's information gathering - briefing slides published

The Authority thanks those who joined last week's briefing on the proposed Code amendment to improve the framework for the Authority’s information gathering. The slides are now available on the Authority's website for those who couldn’t make the briefing.

The consultation closes on Tuesday, 24 August 2021.
Read more

Draft determination of the causer of the 2 May 2021 under-frequency event

The Authority is seeking submissions on our draft determination of the causer of the 2 May 2021 under-frequency event. We will consider submissions on this consultation before making a final decision of the causer. Submissions close on Tuesday 24 August 2021.
Read more

Energy Trader Forum, Thursday 12 August, Wellington

The next Energy Trader Forum of 2021 will be held on 12 August at Te Wharewaka o Pōneke, Wellington.
 
A panel discussion will kick off the event about the pathway to affordable, 100% renewable electricity – is it achievable? The panel will discuss the challenges, future generation mix and potential market changes.
 
The forum will also include Ed Oosterbaan from Energy Market Services, providing insights on the FTR market (financial transmission rights) and how trading has evolved since the market began in 2013.
 
Tim Street – Energy Market Analyst at Energy Link – will take us through EACs (Energy Attribute Certificates) and what the future may hold for EAC trading to assist in increasing renewables.
 
Jörn Scherzer – Head of Climate and Waste at Hutt City Council – will revisit the emissions reduction commitments made by the HCC, covering changes made to energy load and fuel mix and what is yet to come.
 
There will also be the usual market updates and networking opportunities.
 
Register for the forum here.

Current consultations

Permanent change to definition of disclosure information

Ending: 3/8/2021 5pm

Read more

Improving the framework for the Authority's information gathering

Ending: 24/8/2021 5pm

Read more

Draft determination of the causer of the 2 May 2021 under-frequency event

Ending: 24/8/2021 5pm

Read more

Updating the Regulatory Settings for Distribution Networks

Ending: 14/9/2021 5pm

Read more
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