Annual Security and Reserve Energy Needs Assessment 2008 [Closing date: 2008/10/31 17:00:00 GMT+13]

In accordance with the Electricity Act and government energy policy the Commission is:

• charged with using reasonable endeavours to ensure that the generation and transmission system is capable of maintaining a mean winter energy margin of 17 percent for New Zealand overall, and 30 percent for the South Island;
• not to assume any demand reduction from emergency conservation campaigns; and 
• minimise distortions to the normal operation of the electricity market.
  

While it would be preferable for electricity market participants to achieve the desired security standard through independent market mechanisms, this has not always occurred.

One of the Commission’s key responsibilities is to forecast two to three years out to identify any 'shortfalls' in New Zealand's ability to maintain the desired winter energy margins. Where the Commission identifies a shortfall, it is expected by the government to contract for reserve energy.

The following report considers the need for additional (in addition to Whirinaki) reserve energy in 2009 and out years.

• Security of Supply Policy pdf [96 KB]
  

The methodology used to assess security and the need for additional reserve energy accords with the Commission’s revised security of supply policy:

• Annual Security Assessment 2008 pdf [784 KB]
  

The underlying approach makes an assessment of the technical capability of the generation and transmission system to meet anticipated electricity demand and therefore relies on a number of key inputs which are each discussed in the report. They include:

• forecast demand;
• the availability and capability of the transmission system and generators, especially thermal generation; and 
• the availability of fuel for thermal generation.
  

Comment is now sought on each of these input assumptions.

In line with the Commission’s security of supply policy an assessment has also been made of the power system’s technical capacity to meet peak demands, i.e. a technical assessment of ‘capacity adequacy’ in 2009 and out years.

This report will form the substantive base upon which a decision about the need for reserve energy for 2009, 2010 and 2011 will be made.

The Commission is seeking to reach a decision on the need for additional reserve energy in November 2008. Therefore, comment on the Annual Security Assessment 2008 report is sought by 5 pm on 31 October 2008.

Comments should preferably be sent by e-mail, in Word format, to:

Maree McGregor
Electricity Commission
Level 7, ASB Tower
2 Hunter Street
PO Box 10041
Wellington
New Zealand

Tel: (04) 460 8860
Fax: (04) 460 8879

info@electricitycommission.govt.nz

The Commission will acknowledge receipt of all submissions electronically. Please contact Maree McGregor if you have not received an acknowledgement of your submission within two business days.

The Commission is required to undertake its functions with a high degree of transparency. Accordingly, please be aware that any information provided to the Commission may be discussed with, or provided to, other parties UNLESS you specify that information is provided to the Commission as 'Commercial in Confidence', in which case you should specify the information that is confidential and the reasons. You should also be aware that the Commission is subject to the Official Information Act 1982.