Market Overview:

New Zealand operates a competitive Wholesale Electricity Market across the North and South Islands, coordinated through a real-time spot market managed by the system operator, Transpower. Generators submit offers into the market, while electricity retailers and large users bid based on forecast demand. Every half hour, the system is cleared based on supply-demand matching and transmission constraints, with pricing determined at key grid nodes. The market is overseen by the Electricity Authority, which ensures compliance, transparency, and efficient operation. The generation and transmission infrastructure is owned and operated by a mix of state-owned enterprises and private firms.

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How Proa Can Help:

Proa helps participants in the New Zealand market improve forecasting accuracy and prepare for upcoming regulatory changes.

• Forecasting: In response to the 2021 grid emergency, the Electricity Authority is introducing a hybrid forecasting model to improve the reliability of intermittent generation forecasts. As part of this, they are conducting a procurement process to select a centralised forecasting service provider, with new arrangements expected to be in place by winter 2025. Proa supports generators in meeting the required performance standards for self-forecasting—helping reduce imbalance costs and improve compliance under the new framework.