Remaining elements of real-time pricing consultation paper

The Electricity Authority in April 2019 consulted on the remaining elements of real-time pricing (RTP).

The RTP project seeks to transition the electricity system to publish final prices for the wholesale spot market in real-time.

Consultation on the remaining elements follows a 2017 consultation which set out the major elements of a proposed RPT design. The latest consultation includes the expansion of dispatch-lite to include smaller-scale generation in addition to controllable demand.

NZWEA considers the project a significant development for the electricity sector in enhancing the trading of electricity and that the proposed dispatch-lite changes support the achievement of the stated objective of ensuring spot prices more accurately reflect prevailing conditions on the power system.

In its submission the Association noted studies undertaken by the Parliamentary Commissioner for the Environment confirm that large scale wind farms can only ever occupy a small portion of a country’s wind locations and the opportunity for smaller scale developments and the importance of having a model for spot market participation that is cost appropriate such as dispatch-lite.

The Association also noted that as New Zealand’s electricity system develops, with an increasing level of intermittent renewable generation, it is important that market and trading arrangements enable greater market participation of both small-scale generation as well as dispatchable demand.

The Association’s submissions can be viewed here: 

NZWEA Submission on RTP Remaining Elements