If you read nothing else on New Zealand’s Electricity future, read these three essential documents.
- The Flexibility Plan v1.0 published by the Flexforum 31 Auguest 2022
- Electric Homes published by Rewiring Aotearoa on 18 March 2024
- Price Discovery in a renewables-based electricity system published by the Electricity Authority on 11 December 2023
Electric Homes
The report highlights that households currently reliant on gas appliances and petrol vehicles stand to save approximately $1,500 annually at prevailing interest rates. This saving could surge to about $4,500 annually if these households switch to electric alternatives, leveraging a low-interest loan and sourcing electricity from a mix of rooftop solar, home batteries, and New Zealand’s predominantly renewable power grid.
Such significant financial benefits are expected to motivate consumers towards electrification, regardless of whether electricity distribution networks are equipped to handle the change. The anticipated surge in adoption within New Zealand could mirror the extensive adoption of home solar systems in Australia, propelled by government subsidies. It is hoped that New Zealand will better anticipate and prepare for this grid-edge revolution than Australia managed to do.
Price discovery in a renewables based electricity system
The Market Development Advisory Group’s findings emphasize the necessity for the New Zealand electricity sector to gear up for electrification. An estimated investment of $27 to $37 billion in demand-side flexibility (DSF), batteries, and new generation is required by 2050 to address the increasing power demand. Strategic investments made timely and at the right locations can yield significant benefits. The contract market, pivotal in signaling investment directions, needs enhancement to provide more detailed information about the value of investing in flexibility for both demand and supply aspects of the system. Advances in metering, sensors, and data processing technologies are simplifying the process for consumers (or their devices) to adjust their electricity demand actively. Ensuring the wholesale market design supports full participation from consumers eager to benefit from active demand response is crucial.
