Electricity sector regulators are calling for electricity distributors (lines companies) to actively consider alternatives to building more poles, wires and other infrastructure to meet New Zealand’s growing electricity demand. These non-network solutions include flexible electricity use and supply, energy efficiency, distributed generation and storage. They have the potential to be delivered faster and at lower cost than traditional poles and wires solutions.
In a joint open letter to distributors, the Electricity Authority, Commerce Commission and EECA (Energy Efficiency & Conservation Authority) acknowledge many distributors are already considering deploying non-network solutions, and regulatory changes are further accelerating their use.
But there are further opportunities to be realised and distributors are key to enabling a competitive market for these solutions.
The letter outlines three broad actions the regulators expect distributors to take to enable efficient non-network solutions:
- ensure both non-network and network solutions are considered in network planning
- use price signals that encourage consumers to flex their electricity use and supply when the network is nearing capacity so it benefits them and defers costly network upgrades
- better enable the market to offer competitive non-network solutions, for example through transparent, standardised procurement processes across all distributors.
The regulators invite distributors and others to email their feedback on the actions in the letter on distribution.feedback@ea.govt.nz.
Feedback will help inform future thinking, priorities and work programmes across the Authority, Commission and EECA.
Read a copy of the joint open letter below.
Joint letter to distributors on non network solutions [PDF 273 KB]