About Seminar:
This seminar explores whether New Zealand’s wholesale electricity market (WEM) is fit for the future as the country transitions towards a highly renewable energy system. It outlines the current WEM structure, including the spot market, hedge market, and ancillary services market. It examines anticipated changes in the physical electricity system, such as the increasing share of intermittent renewables like wind and solar, the growth in distributed energy resources, and the rising demand due to electrification.
It argues that a market-based approach is preferable over centralized approaches as it promotes competition, innovation, and investment efficiency. It proposes recommendations for “WEM 2.0,” including measures to improve accurate pricing, risk management tools, competition, and public confidence. It emphasizes the importance of capturing innovation and enabling demand-side flexibility to optimize the renewable energy transition while maintaining a reliable and cost-effective electricity supply.
Download the seminar slides here: LEANZ Wholesale Electricity Market Slides May 2024
The recommendations are based on the Market Development Advisory Group (MDAG)’s 2023 paper. Read the paper here: Price discovery in a renewables-based electricity system – Final recommendations paper
About our speakers:
Tony Baldwin provides advisory and project management services to private and public sector organisations on commercial transactions, strategy, and regulatory policy. He has chaired or project managed a range of major projects, including recent reform proposals by the Electricity Authority’s Market Development Advisory Group; the public float of Genesis Energy (and subsequent M&A transactions); ‘unbundling’ access to Telecom’s local loop network; the deregulation and corporatisation of nine statutory producer boards; and restructuring the electricity industry in the 1990s. Before consulting, Tony was a member of the Policy Advisory Group in the Department of the Prime Minister and Cabinet, and a lawyer at Chapman Tripp in Wellington practicing in corporate and securities law. His details are at www.tonybaldwin.co.nz
David Hunt has worked on a wide range of energy and infrastructure issues for public and private sector clients in New Zealand, Australia and Singapore. He combines rigorous economic analysis with strong practical knowledge and understanding.. David was previously Chief Executive of Contact Energy and, before that, worked for a large Australian energy sector participant. Prior to moving into business, David held senior roles at the NZ Treasury, including Economic Adviser to the Minister of Finance. David is deputy chair of the Accident Compensation Corporation, a director of Christchurch City Holdings Ltd, and an associate at Concept Consulting Group.