The way we generate and consume electricity is changing rapidly. With increasing demand for renewable energy, fluctuating power supply, and the rising need for grid stability, energy flexibility has emerged as a key solution. But what exactly is energy flexibility, and how does it benefit New Zealand?
Energy flexibility allows energy distribution businesses, New Zealand businesses, and homeowners to adjust electricity consumption and generation dynamically based on demand and supply conditions. It is crucial to ensure reliable electricity while integrating more sustainable energy sources like wind and solar.
In this guide, we’ll explore how energy flexibility works and its unique benefits for New Zealand’s electricity market.
What is Energy Flexibility?
Energy flexibility is the ability to dynamically adjust electricity usage and generation to maintain balance within the power grid. This helps prevent overloading, stabilises energy prices, and ensures a continuous power supply.
According to GridX, energy flexibility can be categorised into demand-side response (adjusting consumption) and supply-side flexibility (adjusting generation). Both mechanisms help optimise energy flow, preventing blackouts and reducing reliance on fossil fuel-based backup power plants.
How energy flexibility can work with renewable energy sources and energy storage solutions. Credit: Lichtblick AG
A fully renewable energy system with various distributed energy resources to provide flexibility for grid stability. Credit: GridX
How Energy Flexibility Works in New Zealand
1. Demand-Side Response (DSR)
In New Zealand, demand-side response is a key approach to reducing strain on the power grid during peak periods. For example:
- Large businesses and industries adjust power consumption in response to price signals from the electricity market.
- Residential users with smart meters and time-of-use pricing can shift their energy use to off-peak periods, lowering their electricity costs.
- Renewable energy users (such as those with solar panels) can store excess power for later use, reducing grid reliance.
The Electricity Authority of New Zealand promotes demand-side flexibility to make the country’s power system more cost-effective and sustainable.
2. Smart Grids & Digital Infrastructure in New Zealand
New Zealand actively invests in smart grid technology to create a more efficient and resilient energy network. These smart grids:
- Use real-time monitoring and automation to manage power distribution.
- Help distribute wind and solar power more efficiently.
- Allow businesses and consumers to actively participate in the energy market by adjusting their usage based on network and pricing signals.
3. Renewable Energy Integration & Battery Storage
New Zealand’s transition to 100% renewable energy relies on energy flexibility. The country’s energy grid benefits from:
- Hydroelectric power stations that adjust generation levels dynamically.
- Battery storage solutions that store excess solar and wind energy for use when needed.
- Microgrids in remote areas that increase energy independence and reliability.
The New Zealand Battery Project is a government initiative aimed at supporting energy flexibility by investing in large-scale battery storage solutions.
4. Real-World Case Study: New Zealand’s FlexTalk Project
In New Zealand, EECA and industry partners launched the FlexTalk project, a trial designed to improve smart grid communication between electricity providers and consumers.
The project aims to create a more dynamic and responsive electricity network, allowing utilities to incentivise flexible energy use during peak demand periods (EECA). Cortexo is the technical lead for this project, working collaboratively with stakeholders to create solutions for the future of electricity in New Zealand.
FlexTalk New Zealand Project Timeline. Credit: Electricity Engineers’ Association, Projects: FlexTalk
The Benefits of Energy Flexibility for New Zealand
1. Lower Electricity Costs for Consumers & Businesses
Energy flexibility reduces the need for expensive peak-time electricity generation, lowering power bills for businesses and households.
2. Increased Use of Renewable Energy
New Zealand’s commitment to 100% renewable electricity by 2035 is supported by energy flexibility, which allows better management of intermittent sources like wind and solar.
3. Improved Grid Reliability & Resilience
With increasing electric vehicles and decentralised energy systems, energy flexibility helps prevent grid instability and blackouts.
4. Supports Decarbonisation Goals
Energy flexibility contributes to New Zealand’s emissions reduction targets by reducing reliance on fossil fuel-powered backup generation.
5. Encourages Innovation in Energy Management
Adopting smart energy technologies and AI-driven grid optimisation creates new business opportunities in the energy sector.
Cortexo: Enabling Energy Flexibility in New Zealand
Cortexo is at the forefront of energy flexibility solutions in New Zealand, providing cloud-based platforms that help Electricity Distribution Businesses (EDBs) integrate distributed energy resources (DERs) into the power grid. Their technology enables flexibility service providers and utilities to optimise grid operations by using open standards like OpenADR for seamless energy management.
For senior managers in EDBs, Cortexo offers tools that enhance grid stability, reduce peak demand, and improve infrastructure investment decisions. Through initiatives like FlexTalk and FlexViz, Cortexo is actively shaping the future of energy flexibility in New Zealand, ensuring that businesses and utilities can efficiently manage electricity demand and increase the visibility of flexible energy resources.
By leveraging real-time data and digital automation, Cortexo empowers the electricity sector to transition towards a smarter, more resilient energy system.
Conclusion
Energy flexibility is the future of sustainable energy in New Zealand. By integrating digital technology, demand response, and smart grids, we can build a power system that supports renewable energy, reduces costs, and ensures reliable electricity for all.
For further details on partnering with Cortexo for demand flexibility projects, reach out to Terry Paddy at terry.paddy@cortexo.com or 021 359 868.
