Market Brief - 22 August 2024

Today's Market Brief shares the system operator's decision to raise the contingent storage release boundary for a limited time.

System operator decision on contingent storage release boundary

The system operator has today announced its final decision to add a new buffer to raise the contingent storage release boundary (CSRB) for a limited time. This new increased buffer increases the alert status curve to give industry greater flexibility to manage emerging security of supply risks through access to contingent hydro storage. The final decision takes into account the views of industry and other stakeholders through the consultation process. The final decision and the submissions are published on Transpower's website. The decision will allow generators to access contingent storage at lakes Tekapo, Pūkaki, and Hāwea if a security of supply alert status is triggered. While storage levels tend to increase in spring as rain falls, this will give industry increased flexibility to respond to reduce system security risks if the situation continues to deteriorate. The system operator initially proposed adjusting the alert CSRB buffer to raise the alert curve only for September. In response to submissions, its final decision increases the alert CSRB buffer for September and by a smaller amount for October to raise the alert curve for both months. This provides generators greater ability to respond to security of supply risks if inflows from rain and snowmelt are slow improving. Updated information about the emerging security of supply risk can be found on a dedicated page on Transpower's website.

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