Building Aotearoa’s First End to End Flexibility Market

By Terry Paddy, Managing Director, Cortexo Limited

New Zealand is on the brink of a major shift in how we run our electricity system. Moving to 100 percent renewable energy or even close to it is not just about installing more wind turbines or solar farms. It is about creating a system that can adapt, respond and balance itself in real time. That is what flexibility offers, and it is why the Electricity Authority’s Power Innovation Pathway (PIP) is so timely.

Cortexo and Our Energy have been selected and are among eight projects in the PIP Year One Insights Report. This inclusion is more than symbolic. It gives us access to work side by side with the Authority’s experts. Together, we are tackling hard questions and designing the architecture for New Zealand’s first full flexibility market.

(Read the full Electricity Authority Power Innovation Pathway Year One Insights Report)

The word “flexibility” has been in energy circles for years. What is new is putting it into practice. We are proving that distributed energy resources such as batteries, rooftop solar and electric vehicles must be visible to the grid. Without that visibility, flexibility remains invisible. Without visibility, no market can function.

Networks have long been rewarded for building more infrastructure. But that model will not scale in an electrified future. We need tools that manage demand, defer costly upgrades and reduce consumer costs. Flexibility is that tool.

• At Cortexo, we bridge both sides of this emerging market:Utilities and grid services who need flexibility

As Cortexo CEO Terry Paddy explains, “Flexibility has the potential to completely reshape how our electricity system operates. It opens the door to innovation, empowers both utilities and consumers and creates real value across the entire energy market.”

Flexviz: The Window to Visibility

Our flagship tool, Flexviz, gives life to this concept. Integrated with Our Energy’s Localflex market, Flexviz is a real time dashboard of flexibility across Aotearoa’s grid. Every five minutes it updates, showing what resources are available, where and when.

This is not just a gadget. For utilities and network operators, it is a decision support tool. For providers, it is a marketplace showcase. It turns hidden capacity into a tradable asset.

Removing Entry Barriers

Recognising that this is a new frontier, Ara Ake has launched the National Flex Discovery Fund, offering up to NZ$1 million in grants. The fund is intended to reduce the barriers faced by flexibility service providers such as system integration, testing and engaging end users.

“We are building a market that does not yet exist,” says Paddy. “Without early support, there is little incentive for providers to make their flexibility visible. Ara Ake’s backing removes that cost barrier and gives innovators the push they need to participate with confidence.”

What Lies Ahead

The path to a full flexibility market is not without challenges. Standards, regulatory frameworks and incentives must all align. But the momentum is building. The partnership between innovators, the Electricity Authority and industry actors signals that New Zealand is ready to embrace flexibility as a core part of its energy transition.

By making flexibility visible, measurable and tradable, we are not just preparing for a renewable future, we are building it. The next few years will show whether we can succeed. But right now, we are laying the tracks.

Terry Paddy
Managing Director, Cortexo Limited