The Electricity Authority has released a discussion paper seeking input from the technology sector and other industry stakeholders on how data and digital tools could shape New Zealand’s future electricity system.
The discussion paper, titled ‘Our future is digital’, has been published to encourage open debate regarding a more data-driven and technology-enabled electricity market. The Authority has called for feedback from innovators, disrupters and other interested parties to contribute their views, particularly around new ideas that challenge current industry practices.
Andrew Millar, General Manager Retail and Consumer at the Electricity Authority, said the paper aims to give industry participants and the wider tech community a platform to share their perspectives on the use of data and technology in the electricity sector.
“It’s important we start thinking and planning for our future system now, especially as more options emerge for people to actively engage in how they use and manage electricity in their homes and businesses,” says Millar.
Millar noted that the Authority is aware of ongoing technology-driven solutions through initiatives such as the Power Innovation Pathway, with various organisations already developing products that support a smarter, more efficient electricity system.
“We know through our Power Innovation Pathway initiative that some organisations are already progressing technology-driven solutions to support a smarter electricity system, and this is really useful,” Millar said. “But now we’re looking for some ‘blue sky’ thinking on how data and technology could disrupt the market to offer consumers more choices for buying, using, trading and selling electricity – and ultimately to lower the costs we all pay for power.
The Authority is working on several projects aimed at enabling the necessary market structures for digitalisation. In releasing this discussion paper, it is seeking a broad overview of the current state, testing various concepts, and identifying where stakeholders see opportunities and challenges.
“The Authority already has some discrete projects underway to enable the underlying market settings. We want to get a better understanding about what’s happening across the board, test some key concepts, and find out where people think the challenges and opportunities are. From there, we’ll consider what role the Authority and others can play in supporting this transition to a more digitalised electricity system.”
Engagement on the discussion paper will help inform the Authority’s next steps, which will include closer examination of the issues in cooperation with interested parties. This consultation effort will aid in the development of a system-wide view and a roadmap for the digital transformation of the sector.
The Authority has indicated that its goal is to maintain flexibility and responsiveness as new technologies and data-driven models emerge. The intent is to ensure regulatory settings can support innovation, while also safeguarding consumer interests during the sector’s transition.
“We’re thinking ahead to what’s next for consumers, and this discussion paper is an important step. We want to engage with and support those involved in developing a smarter electricity system, so New Zealanders can more quickly enjoy the benefits.”
This work complements the Authority’s immediate focus on its priority areas for market reform.
“A smarter, more digitalised energy system also supports increased consumer mobility – a future where households and businesses are active participants, equipped with data and innovative tools to switch providers, take advantage of new products and services, and share power with others in a system that works for them.
“Adopting new technologies and leveraging data can also strengthen the security and resilience of the electricity supply and increase system efficiencies. This helps to lower the overall cost of supplying electricity over the long term.
“We look forward to hearing more from the industry and others about how to support transitioning the electricity system and the opportunities and challenges it holds,” Millar said.
The Authority has set a deadline for written feedback on the discussion paper and is offering opportunities for stakeholders to arrange meetings or calls to share their perspectives directly. The engagement process will contribute to the formulation of a long-term digitalisation programme for the electricity sector in New Zealand.
