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New assessment of electricity supply security

Friday, 20 December 2002 Media Statement

New assessment of electricity supply security

Minister of Energy Pete Hodgson today released a new assessment of the dry year risk for New Zealand's electricity system.

The report by consultants Energy Link Ltd indicates that the chance of a supply shortage is in the region of 1-in-35 in each of the next four years. It notes that this is considerably less than the historical standard applied by the former ECNZ, which operated its hydro reservoirs to a 1-in-20 dry year security standard.

The report was commissioned by the Ministry of Economic Development to increase the depth of information publicly available on New Zealand's electricity system.

The Energy Link modelling is considerably more detailed than modelling by the University of Canterbury-based Centre for Advanced Engineering and Transpower, the national grid operator. It takes into account possible hydro inflow variability within years, storage capacity in the different reservoirs, and the transmission constraints within the grid.

The Energy Link report is available on the Ministry of Economic Development website: http://www.med.govt.nz/ers/electric/dry-year-risk/

ENDS

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