MDAG’s options paper on price discovery in a renewable based systemLast updated: March 6, 2023
MDAG’s options paper on price discovery in a renewable based system
Published: March 6, 2023
Submitting To: Electricity Authority
Issue for Business: The Electricity Authority formed the Market Development Advisory Group in 2021 to inform the Authority on what issues could/will impact the wholesale market at 100% renewable electricity. The group is made up of experts from the sector in different areas. In this paper, the group has analyzed 47 possible options to ensure the market operates well as more renewable generation enter the market. Following the analysis, the group has recommended 34 preferred options to address the issues outlined in their original paper published at the beginning of 2022. The options address topics of risk management, co-ordination issues, competition, public confidence, demand-side flexibility and investment. BEC commented on several options. Notwithstanding this commentary, BEC outlined the importance of a more manageable, and possibly realistic implementation timeframe. The 34 options are sizeable, and will take time. The Authority could be constrained when implementing each option, considering their own workstream and legislative responsibility as the market regulator.
Outcome: After considering the submitted feedback from across the sector, MDAG will publish their final recommendations. We look forward to seeing MDAG's final recommendations.