Security of Supply

Security of Supply is the area relating to meeting system security in a 1 in 60 dry year.

The Commission is responsible for managing the electricity sector so that electricity demand can be met in a 1-in-60 dry year, without the need for emergency conservation campaigns.

This is a result of the New Zealand Government's concern that there was not adequate incentive under previous market arrangements for generators to provide for sufficient supply security in very dry years. This has led to extreme price volatility in the spot market and the need for power savings campaigns in 2001 and 2003.

The Commission's activities include forecasting supply and demand, developing and publishing minimum hydro levels for security of supply, contracting for reserve energy, and improving the ability of consumers to manage price risks in the market.

The Electricity Commission’s Director Security, Generation and Distribution is Gari Bickers.

There has been some discussion recently on the significance of the Electricity Commission’s Minzone calculation and how the Minzone is updated. The briefing note, minzone and how low hydro storage levels are managed, seeks to clarify the situation about the Minzone.

• Security of energy supply
• Security of supply policies
• Reserve energy
• Reserve energy agreement (Whirinaki), offer strategy and other information
• Security Advisory Group
• Consultation papers
• Submissions
• Demand questionaire June 2008 xls [29KB]