Price discovery under 100% renewable electricity supply

The New Zealand Wind Energy Association (NZWEA) is please to provide a submission on the Price discovery under 100% renewable electricity supply issues discussion paper.

The work has been initiated by the Market Development Advisory Group (MDAG) on behalf of EA to properly understand how price discovery might work and to develop recommendations based on what changes should be made to the wholesale electricity market to ensure it is effective with 100% renewable electricity (100%RE) supply. 

Our submission covers the NZWEA response to the review, which is being undertaken across 3 stages: Issues discovery, and investigation into how the electricity system may behave with a 100%RE supply, along with key issues relating to market design perspectives. Identification and analysis of options that relate to those key issues and behaviours, and final recommendations and proposal. 

The submission includes The Association response to:

  • Broad conclusions based on the simulations relating to spot price levels and volatility

  • With 100%RE system being potentially more diverse and difficult to coordinate resources whether the wholesale market might be the preferred mechanism to coordinate plans and actions among all the resource owners

  • Key issues within the Contracts Market

  • Agreement on moving onto the next steps