Co-design group appointed to develop standardised flexibility contracts for wholesale market

The Electricity Authority Te Mana Hiko is pleased to announce the appointment of eight members to its new Standardised Flexibility Products Co-design Group. The members bring a range of sector knowledge and experience and include:

• 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.

This group of representatives will work with the Authority to develop flexibility products from October to December 2024. Trading of the products will commence in early 2025.

The Authority will appoint a Chair for the group by the end of September. The group's work will be reviewed by a subgroup of the Electricity Authority Advisory Group.

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.

Standardised flexibility products are recommendations made in the Market Development Advisory Group’s final report on Price Discovery in a Renewable-Based Electricity System.

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.