- New Zealand electricity regulator seeks more information on gas for electricity generation
- Says gas is critical for the security of electricity supply
New Zealand’s electricity regulator is looking to access more information on the use of gas for electricity generation. The regulator found its lack of access had hampered the sectors response to the dry year risk this winter.
In a briefing to the Energy and Resources Minister, Megan Woods, the Electricity Authority said the dry year conditions this winter revealed the importance of gas to the security of electricity supply. However, the Electricity Authority said the lack of clarity on gas availability for electricity generation purposes had affected its risk calculations.
“A key issue throughout the event has been uncertainty about the ability of thermal generators to access gas,” officials of the Electricity Authority explained in a letter to Woods. “This includes the terms and circumstances in which this would be made available and the validity of the assumptions about this availability in the system operator’s calculation of energy risk curves (which are triggers for both an official conservation campaign and rolling outages).”
The Regulator also explained the need for the grant of access to critical gas information. “The authority has legislative tools available to compel electricity participants to provide any information necessary to support its monitoring functions; no such tools exist for the gas sector. As New Zealand transitions to 100 per cent renewable generation, information on the gas sector will be increasingly important for the Authority to manage, monitor and understand market impacts and security of supply.”
In response, the Minister said, she welcomed the regulator’s plans to review its ability to respond to security of supply concerns. “I expect that the Gas Industry Company, the industry body that co-regulates the gas industry, and the EA will work together to ensure that security of supply is effectively managed across both our gas and electricity markets,” Woods said.
Woods also stated that she expects a report from the gas regulator in the coming weeks on the market and regulatory settings that underpin the security of electricity supply.