Standardised Flexibility Product Co-design Group
The Standardised Flexibility Product Co-design Group works with the Authority to develop flexibility products for the wholesale electricity market.
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Role
The Standardised Flexibility Product Co-design Group is working with the Authority to develop flexibility products from October to December 2024.
The group's work will be reviewed by a subgroup of the Electricity Authority Advisory Group and trading of the products will commence in early 2025.
Consumers and industry stand to benefit from trade in flexibility products. The market for flexibility products will provide an important price signal for investment in new generation and demand flexibility solutions, ensuring consumers benefit from more reliable and affordable electricity.
As New Zealand develops more intermittent generation, like wind and solar, electricity supply needs to be firmed with generation from hydro or other flexible generation. Access to flexibility contracts will act as “insurance” for this firming and will give participants another risk management tool to manage financial risk, particularly during periods of volatility.
The Authority will use the revised Hedge Disclosure Obligations to monitor trade in both standardised and non-standardised flexibility products. When trading begins the Authority will measure and publish information about flexibility contracts trading as part of a broader suite of competition indicators. This information will inform the decision to implement stronger pro-competition measures if necessary.
The introduction of standardised flexibility products is a key priority for the Electricity Authority. The recently established Energy Competition Task Force has included this project as a key measure to enable new generators and retailers to enter and compete in the market. This work also implements recommendation 8 from the Market Development Advisory Group’s final report on Price Discovery in a Renewable-Based Electricity System.
Members
The group is made up of eight members appointed for a three-month term by the Electricity Authority (starting 30 September 2024) to represent a range of sector knowledge and experience.
- Karl Arns, emhTrade Markets, OTC Solutions Manager/Sales Trader
- Tim Boyce, Contact Energy, Head of Wholesale Markets
- Matt Carnachan, Hiringa Energy, Head of Trading and Energy Markets
- Shaun Goldsbury, BraveTrace, CEO
- Nick Haines, The Energy Collective, Group CFO
- Michael Jefferson, Enel X, Head of Development and Innovation
- Paul Morrison, Meridian Energy, Financial Product Owner
- James Tipping, Vector, General Manager Market Strategy/Regulation