Managing peak electricity demand

Potential solutions for peak electricity capacity issues

Upcoming Open Closed Decision
View submissions Submissions closed 1 March 2024
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Decision

We would like to thank all stakeholders who provided a submission. After considering the feedback received and the lessons learned from the 10 May 2024 low residual situation, we have decided to further develop a range of solutions to support security of supply. We will:

  • accelerate demand response participation in the market by actively exploring a full range of regulatory levers
  • change market settings for security of supply by updating and consulting on the Security Standards Assumptions Document
  • start development of an integrated standby ancillary service in the form of a five-minute variability management tool to provide cover for a sudden reduction from intermittent generation sources
  • promote flexibility and competition in the wholesale and ancillary service markets by undertaking work to enhance battery energy storage systems and dispatchable demand participation and remove barriers to entry. This includes building additional value streams for flexibility
  • enhance forward price discovery in flexibility markets by developing standardised flexibility financial products with the support of industry co-design
  • enhance outage information and coordination by developing potential improvements to the outage coordination process.
Decision paper: Potential solutions for peak electricity capacity issues

Decision paper: Potential solutions for peak electricity capacity issues

Consultation

This consultation sought feedback on proposed interim and long-term solutions to manage peak demand periods and the need for increased flexibility. Thanks to all submitters for engaging with this consultation.

Coordinating resources during peak winter demand periods has proved more challenging in recent years. We expect these challenges to persist over the next few years.

We recognise that each proposed solution presents significant trade-offs between reliability, efficiency, and cost to consumers. We would like to thank submitters for their feedback on each of the proposed solutions and any additional data and/or any alternative solutions provided which would present a lower cost to consumers.

Consultation paper: Potential solutions for peak electricity capacity issues

Consultation paper: Potential solutions for peak electricity capacity issues

Submissions

Download all submissions (.zip)