Market impact assessment of Arapuni split

Under the Electricity Industry Participation Code (Code), Transpower is required, and has demonstrated, a net benefit a from the permanent grid reconfiguration.

Genesis Energy raised concerns around the regular opportunities this reconfiguration affords Mighty River Power to exercise market power, primarily at the Kinleith grid exit points, and that these market impacts should be included within the net benefit assessment.

Our report details the review we conducted and considers the potential impacts of the Arapuni bus split on the wholesale electricity market.

Potential amendments to the Code to include market impacts and potentially reduce time delays in some grid reconfiguration approvals are also considered.