1. Efficient procurement of extended reserve Industry briefing
31 October 2016—Wellington
3 November 2016—Auckland
Clive Bull—Strata Energy Consulting

2. welcome housekeeping—exits, bathrooms
introductions—Electricity Authority, Transpower (system operator) and NZX (extended reserve manager)

3. Today’s Briefing
currently consulting on draft technical requirements schedule and draft selection methodology—
consultation papers published on Transpower and NZX websites
written submissions—due by 5 pm on Tuesday 29 November 2016
neither the service providers nor the Authority have fixed or final views on the matters being consulted on
today’s purpose—
overview the consultation documents and answer questions
help you to better understand the proposals and inform submissions
implementation focus—we are not in a position to negotiate decisions the Authority Board has already made regarding policy

4. the process to date
2014 Code amendment for new extended reserve provisions
System reliability Selection efficiency
System Operator—
reviewed AUFLS system performance
published a technical requirements report in 2013
concluded improvements could be made, considered options and recommended a 4-block NI AUFLS scheme—10/10/6/6, min. & max.
The Authority—
reviewed the way that AUFLS load is procured
concluded a centralised selection process would deliver additional efficiency benefits
amended the Code (c. 2014)
appointed ERM

5. old vs new
AUFLS—system security mechanism—quickly sheds blocks of load
old AUFLS new AUFLS
a minimum aggregate percentage obligation per distributor— 16%+16%
distributors self-select the load & self-manage
under-frequency relays—usually at distribution feeder level
SO sets new technical requirements
NI asset owners provide load data
ERM centrally selects DUs from aggregated data
ER providers—
writes implementation plan for SO approval
fit, test, commission, arm
provide regular data updates
ERM PPR & flexible re-solve

6. Today’s agenda
10:15 am (now)—technical requirements schedule (system operator)
11:30 am—selection methodology (extended reserve manager)
12:45 pm—lunch break
1:15 pm—data provision process (extended reserve manager)
1:45 pm—implementation planning (system operator)
aim to wrap up by 2:30 pm
Auckland session times