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Demand Side Bidding Forecasting project

Demand side bidding and forecasting project

Index

Introduction

Prior to the commencement of the Electricity Governance Regulations and Rules 2003 (Rules), the New Zealand Electricity Market (NZEM) assessed the role of demand bids in the electricity market. This was a long-term development issue for the electricity market. At the time of handover from NZEM to the Electricity Commission (Commission), a proposal was being developed to capture the benefits of central load forecasting, while also facilitating demand-side price response through the bidding process.

The Commission has continued with the development

Initial consultation (May 2005)

In May 2005 the Commission published a consultation paper on a Demand-side bidding and forecasting proposal. Eighteen submissions were received and a summary of submissions was presented to WMAG on 21 July 2005. 

Second consultation, including draft rules (July 2007)

Based on submissions on the May 2005 consultation paper and on subsequent discussions with major consumers, lines companies and retailers, the Commission further developed the proposal and published a second consultation paper which included proposed new rules. Fifteen submissions were received, and a summary of submissions was presented to WMAG on 18 October 2007.

Industry briefing (August 2007)

To help clarify participants’ understanding of the proposal in advance of submissions the Commission held an industry briefing (industry briefing pdf [149 KB]) on 15 August 2007. A number of questions were raised at the briefing which could not be fully answered at the time. The Commission subsequently published a summary of questions (summary of the questions pdf [16 KB]) and the Commission’s response.

Update report (August 2008)

The Commission published the Demand-side Bidding and Forecasting Update Paper on 20 August 2008.  The purpose of the paper is to update participants on progress since the second round of consultation in July 2007.   The paper includes a summary of the submissions made together with the Commission's response and changes, where any, the Commission has made to both the concept and to the proposed rules.  The draft rules are also included.  

Comments on this update are welcome and should be sent to the Commission by 15 October 2008. 

The Commission has received three submissions on the Demand-side Bidding and Forecasting Update Paper.

Together with the comments received, the Commission will use the Update Paper as the basis for continuing the discussion with the system operator around specifics of the proposal and the timing of its implementation. 

Update September 2009:  The Commission and the System Operator are working together to finalise the design and get an accurate cost estimate and timeline for implementation.  It is anticipated that a short consultation paper will be released early 2010 to inform participants of the final proposal.

Relevant WMAG papers or discussions

Below are links to relevant papers or discussions presented at WMAG meetings in the past:

Last update on 30 September 2009 11:46 AM