Market Development Advisory Group

Role

The Market Development Advisory Group (MDAG) was formed in October 2017 and disbanded in February 2024. MDAG provided independent advice to us on the development of the Electricity Industry Participation Code 2010 and market facilitation measures.

MDAG focused its advice on matters relating to the evolution of the ‘machinery’ of the electricity market, specifically:

• initiatives to promote efficient pricing in markets and for monopoly services
• initiatives to promote efficient management of capacity and energy risks
• any other policy matters that the Authority considers appropriate

Pricing in a renewables-based electricity system

New Zealand has committed to achieving net zero emissions by 2050, with the Government aspiring to achieve 100% renewable electricity by 2030. Over the coming decades it is likely that heating and transportation in New Zealand will need to be electrified, causing a significant increase in demand for electricity. This will need to be met by large quantities of new renewable electricity generation.

MDAG investigated how the wholesale electricity market might operate with an electricity supply that is renewables-based. MDAG identified and analysed solutions for future action and developed recommendations for the Electricity Authority for changes to the wholesale electricity market. The aim of these recommendations was to ensure economically efficient price signals and the smooth operation of the electricity industry for the long-term benefit of consumers.

Meeting papers

Here are the minutes from the MDAG meetings.

Members

MDAG consisted of eight representatives who were appointed by the Electricity Authority to represent a broad array of expertise in the electricity industry:

• Tony Baldwin - Chair
• Paul Baker (Nova Energy)
• Matthew Cleland (Contact Energy)
• Tony Oosten (Fonterra)
• Rebecca Osborne (Transpower)
• Andrew Kerr (Alpine Energy)
• Fiona Wiseman (Manawa Energy)
• Al Yates (Ecotricity NZ)

Key documents