The Electricity Authority introduced new wind offer arrangements that enable wind generation to be offered into the spot market in up to five price bands in September 2019.
The Electricity Authority (EA) consulted in September 2017 on proposed changes to how wind farm owners offer their generation into the market.
Following the withdrawal of 80MW of wind generation in 2014 the Electricity Authority (EA) has been considering market rules around wind offer arrangements. The EA issued a consultation paper to allow wind farm owners to offer their generation into the market in five price bands similar to other generators to address two identified issues:
Wind generators offering production even when market prices are below the short run marginal cost.
Wind generators occasionally withdrawing generation without signalling this intention.
NZWEA and its members, in their individual submissions supported the change as it was recognised that there is a short run marginal cost to wind production and that remaining a price taker with a one cent offer price disadvantages wind generation. The new arrangement affords wind generation the same flexibility as other forms of generation while being subject to relevant rules about withdrawing generation.
NZWEA’s submission can be viewed here: