The Electricity Authority is the electricity market regulator and is responsible for the efficient operation of the New Zealand electricity market. The Authority regulates the electricity market by developing and setting the market rules – the Electricity Industry Participation Code (Code) – enforcing and administering the Code and monitoring the market’s performance.
The Code requires a generator who is planning to connect a generating unit with rated net maximum capacity equal to or greater than 1 MW to a local network, to provide the systems operator with written advice of its intention to connect together with other information relating to that generating unit (described in Part 8 of the Code).
The majority of the IEGA members do not have to be registered participants in the New Zealand electricity sector as their generation capacity is less than 10MW.
As such, members do not have to offer their generation volumes in to the wholesale spot market and are therefore price takers. This contrasts with generation plant connected to the transmission grid which offer generation volumes at prices which determine the clearing price and are despatched by the system operator.
Part 6 – Connection of Distributed generation – is the relevant part of the Code for distributed generation less than 10MW. Owners of distributed generation greater than 10MW must have an understanding of, and be compliant with, the rest of the Code.
Part 6 prescribes a connection process between the generation plant owner and the network company. Schedule 6.4 is the distributed generation pricing principles which detail types of payments between network companies and distributed generation owners – including a payment from distribution companies to distributed generation referred to as ACOT. The Authority's changes to this Schedule came in effect on 9 January 2017.
The IEGA does not support the changes to ACOT payments made by the Electricity Authority. These changes are in the process of being implemented. The first region to be subject to the new methodology for assessing the contribution of distributed generation to the transmission system reliability comes into effect on 1 April 2018 for the Lower South Island transmission region. Distributed generation plant on the 'approved list' (deemed to contribute to reliability) continue to receive ACOT payments using the same rate (Transpower's interconnection charge) until 1 April 2020. This methodology is to apply in the following timeline for each transmission region:
- Lower North Island: 1 October 2018
- Upper North Island: 1 April 2019
- Upper South Island: 1 October 2019
You can enquire about how the Electricity Authority and Code apply to your business at https://www.ea.govt.nz/
CURRENT ELECTRICITY AUTHORITY CONSULTATIONS
The IEGA is making submissions to the Authority on Code change proposals that impact distributed generation. The major issue we have addressed is proposed changes to the transmission pricing methodology (TPM) which is ongoing. The IEGA also made substantial submissions on the Authority's proposals to change the payment from distribution companies to distributed generation referred to as ACOT.
Cross Submissions on Transmission Pricing Proposals
Submissions on Transmission Pricing Proposals
IEGA reports on DGPP proposals
Submissions by IEGA and members
The IEGA submission and submissions by IEGA Members are below:
The Electricity Authority received 54 submissions - find all of the submitted documents here: Submissions to EA
Previous submissions by the IEGA on the Electricity Authority’s TPM and ACOT proposals are listed below.
IEGA sought an extension to the consultation period for the Review of the distributed generation pricing principles:
The EA declined this request:
EA presentation to an IEGA meeting 26 May 2016: DGPP and TPM second issues papers - IEGA meeting 26 May 2016
August 2015 – TPM Options Paper
October 2014 - TPM Problem Definition: Interconnection and HVDC
IEGA submission: https://www.ea.govt.nz/dmsdocument/18697
EA presentation to an IEGA meeting: https://www.ea.govt.nz/dmsdocument/18426
January 2014 – TPM Review – ACOT Working Paper