Authority, extended reserve manager and system operator enter development phase
Following extensive industry engagement, the Electricity Industry Participation Code 2010 (Code) was amended in June 2014 to provide a framework for the efficient procurement of extended reserve. The new regime addresses problems with the allocation of automated under frequency load shedding, or AUFLS. These are the blocks of load that are automatically disconnected during large under-frequency events in the New Zealand electrical system.
The Code amendment supports the Authority’s statutory objective by enabling the efficient procurement of extended reserve which, in turn, ensures the ongoing reliability and resilience of the electricity system in the event of a large loss of supply.
On 4 February 2015, after a competitive open tender process, the Authority selected NZX Limited as its preferred supplier for the role of extended reserve manager. The extended reserve manager is responsible for developing and running the process to select the load blocks that are to be used as extended reserve.
We are now working with the extended reserve manager and the system operator on a joint project to develop and deliver the new extended reserve regime.
The key objectives of this joint project are to:
- deliver the technical requirements schedule (TRS)
- deliver a selection methodology (methodology) that meets the requirements in the TRS
- deliver the selection tool that meets the requirements in the methodology
- produce the first procurement schedule of extended reserve using the selection tool
The Authority, the extended reserve manager and the system operator will provide opportunities for North Island distributors and consumers with load directly connected to the grid to provide comments on this initiative in a series of informal workshops and through a formal consultation.
The purpose of the workshops is to communicate the joint plan to potential extended reserve providers and discuss data requirements, test an example procurement schedule and gather feedback on draft materials in preparation for formal consultation. The first workshop is expected to be held in September 2015 and will focus on draft data requirements and operational processes
We will share a draft TRS and methodology and present an example procurement schedule during these workshops.
The wider industry will then have the opportunity to participate in formal consultation starting in May 2016; we will consult simultaneously on the TRS and the methodology. That consultation will also include an example procurement schedule.
We expect to publish the final TRS and methodology and formally request the data required under the Code in September 2016, prior to consultation on the draft procurement schedule.
