Electricity Authority Te Mana Hiko thankfully you implemented RTP with demand response despatch built in. Now we just need to pay for it, my preference is not to go down the AEMC path but instead just treat DR just like generation and pay on the final price what was ultimately dispatch be it generation, BESS or DR. Unfortunately you continue to fight against DR be treated like generation with some arm waving and economic comments like “Double Dipping” and that generators need the payment to pay for fuel but DR does not as it’s not consuming anything (how do you know what the cost to provide DR it could be alternative fuels for boilers or on-site generators, it definitely is the cost of capital of BESS or thermal storage is installed, or finally it could be the extra energy required to increase production to catch up with DR downtime). The other reasoning is that DR participants can receive additional compensation by holding CFD hedges. But this aspect is outside of the physical market and therefore does not directly drive spot market prices. EA you need to do better and actually produce a consultation paper investigation why not to pay DR for despatch so as that the market can have the economists challenge the premise.
Exciting day as we publish the draft determination for integrating price-responsive resources rule change. The result of months of work and stakeholder engagement. Thanks to the team (Sam Markham, Harrison Gibbs, Lily Mitchell, Ben Bronneberg, Craig Oakeshott, Jacqueline Price and Ben Davis), consultants and stakeholders that have inputted throughout the process. Looking forward to discussing it and receiving submissions (12 September). https://lnkd.in/gfEy3eTG