MDAG investigating price discovery under 100% renewable electricity
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The Market Development Advisory Group (MDAG) has commenced a project investigating price discovery in the wholesale electricity market under a 100% renewable electricity supply. The MDAG is an independent group that advises the Authority’s Board on evolving the electricity market.
New Zealand has committed to achieving net zero emissions by 2050, and the Government aspires to achieve 100% renewable electricity by 2030. Over the coming decades it is likely that heating and transportation will need to be electrified, supplied by large quantities of new renewable electricity generation.
The project supports this commitment by looking at the issues below which, when resolved, will promote effective wholesale market operation and long-term generation investment:
- How the spot market will promote efficient operation when a high proportion of generation capacity has low or zero short-run marginal costs of operation
- How stored water will be priced and allocated across time periods, without thermal plant in the market
- How the wholesale market will enable efficient investment when supply is dominated by generation with low short-run marginal costs
- How to ensure efficient pricing in extended periods of supply scarcity, such as dry years.
MDAG intends to deliver its recommendations to the Authority’s Board by the end of April 2022, with subsequent steps to be informed by the recommendations. More information on the project is available on the Authority’s website or if you have any questions, please email MDAG@ea.govt.nz
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The Authority and the Electricity Price Review
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The Authority continues to complete Electricity Price Review (EPR) recommendations. An update on progress is available on the Authority’s website.
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New release of the hydrological modelling dataset
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The Authority has released an update to the hydrological modelling dataset (HMD) that includes data to the end of 2020. This release is a full update of the dataset, revisiting the historical records and correlations. As 2021 has reminded us, an appreciation of the significance of hydro generation and the inherent variability of hydro inflows is fundamental to understanding the electricity market, managing security of supply, and planning of the New Zealand electricity system. The HMD provides detailed information that supports efficient operation of the market, monitoring and policy development, and planning as New Zealand transitions to a 100% renewable system that delivers for consumers.
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Review of the electricity industry's COVID-19 response published
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The Authority commissioned a review of the electricity industry’s response to COVID-19 last year, in particular to the national and regional lockdowns.
The Authority wanted to learn how the electricity industry responded operationally to the COVID-19 lockdowns, and focussed on meeting the needs of consumers, particularly vulnerable consumers, through the lockdown periods.
The review found that the industry generally performed well during the pandemic. Although there were a number of challenges, the industry was able to maintain high levels of operational and customer services.
As has been the case with all sectors of the economy, many lessons have been learned through the experiences of the lockdowns, and subsequently. The Authority is sharing the review’s findings, so the lessons learned can be socialised across the industry.
The review is available to read on our website.
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Permanent change to definition of disclosure information
Ends today at 5pm
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Improving the framework for the Authority's information gathering
Ending: 24/8/2021 5pm
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Draft determination of the causer of the 2 May 2021 under-frequency event
Ending: 24/8/2021 5pm
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Updating the Regulatory Settings for Distribution Networks
Ending: 14/9/2021 5pm
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Level 7, Harbour Tower, 2 Hunter Street, PO Box 10041, Wellington 6143, New Zealand
Tel: + 64 4 460 8860 Email: communications@ea.govt.nz
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