Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Study by Transpower could lead to millions saved


Successful pilot study by Transpower could lead to millions of dollars savings to consumers

“The announcement today by Transpower of a successful Demand Side Participation trial held over winter 2007 in the upper South Island is good news for consumers,” said Ralph Matthes, Executive Director of the Major Electricity Users’ Group (MEUG).

“The trial was the first time ever in New Zealand that small non-grid connected consumers and local generation were called upon when transmission lines were becoming congested. Next winter the trial is progressing to a pilot study on a more formalized contractual basis. This will include incentives and also liabilities should the Demand Side Participation service provider fail to deliver contracted service levels to reduce load on transmission assets that may result in loss of supply or hardship to other consumers. The demand side participants who meet their undertakings to reduce load should receive payment on an agreed basis, not one set arbitrarily by Transpower. Eventually this will become a standard commercial option.

“By having an effective Demand Side Participation product to pay consumers to reduce demand and small local generators to increase supply:

 The timing of new transmission lines can be deferred as long as the savings in deferment are greater then the cost of the Demand Side Participation payments; and

 When transmission is congested, generation also tends to be tight with resulting spikes in spot prices. Over time this leads to higher average retail electricity tariffs. Smoothing out the demand peaks will lower overall costs and therefore reduce the need for increases in delivered power prices for all classes of consumer.

“These savings could potentially be several millions of dollars per year.

“One practical example of how a commercialised Demand Side Participation product will help the economy and consumers is the grid upgrade from Whakamaru to South Auckland. Consent applications are currently being considered by a Board of Inquiry for the controversial 400 kV sized line, which will initially be used at 220 kV for at least 20 years before being enlivened to 400 kV. Under some scenarios it may never be enlivened at the higher voltage. When the Electricity Commission considered and approved, subject to resource consents, the 400 kV sized line it didn’t sufficiently consider how a commercialised Demand Side Participation product might defer the timing of a new line and the size of the line to meet peak demand. If it had, then it’s likely the Commission would have accepted the submissions of many parties, including MEUG, that a 200 kV line was a better option,” concluded Mr Matthes.

© Scoop Media

Business Headlines | Sci-Tech Headlines


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>


Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news