Electricity Authority’s Power Innovation Pathway Fast-Tracks Energy Innovation Through Six High-Value Initiatives

The Electricity Authority Te Mana Hiko will provide enhanced regulatory support to six high-value initiatives through its Power Innovation Pathway (the Pathway) to accelerate Aotearoa New Zealand’s energy transition. The Pathway is the Authority’s approach to unlocking innovation in New Zealand’s electricity sector to improve long-term outcomes for consumers.

General Manager Corporate and Market Services Mark Herring says the Authority’s initial call for Pathway submissions attracted a diverse range of innovators and concepts.

"Following a rigorous assessment, we’ve identified six initiatives from 44 high-potential submissions, representing a wide range of solutions to improve flexibility, system resilience and consumer choice in the energy market," says Herring.

"All innovators using the Pathway receive support from us, but this cohort will benefit from more focused support to understand how regulation can enable their initiative. The aim is to gain insights that can be applied across the sector as they accelerate their concepts to market.

"These six innovators have come to us with the type of forward-thinking solutions New Zealand needs to transition to a more flexible, resilient and consumer-focused electricity system. We're investing extra support to reduce regulatory barriers for all participants and unlock value for consumers."

The six initiatives are:

• Dispatchable demand pilot (Simply Energy) - working with a commercial electricity user to develop their systems and experience using dispatchable demand, and enabling participation challenges to be identified, quantified and analysed.
• Distribution system operation pilot (Counties Energy) - co-ordinating with sector participants to dispatch flexible demand and optimise network capacity.
• Electronic derivatives platform (Aotearoa Energy) - developing a trading platform to help electricity market hedging and electronic derivatives trading.
• End-to-end flexibility platform pilot (Our Energy/Cortexo) - integrating a local market flexibility platform and a local dispatch platform to provide seamless end-to-end demand-side flexibility services.
• Smart panel demand flexibility trial (Basis) - conducting a trial that demonstrates a new model for demand visibility, management and flexibility.
• Voluntary network tariff pilot (The Lines Company) - trialling a voluntary network tariff to facilitate the sharing of solar surplus generated by consumers, with a focus on donating to vulnerable consumers.

Each project will receive tailored support from the Electricity Authority, including regulatory guidance, market insights and connections to industry stakeholders.

Herring says: "We look forward to sharing the lessons and real-world outcomes of these initiatives to help reduce regulatory barriers for others and foster a culture which embraces innovation for the benefit of all New Zealanders."

The Pathway remains open and we encourage engagement from energy innovators looking to navigate the regulatory landscape and bring transformative solutions to market.

• For more information on the six initiatives that will receive enhanced regulatory support, contact innovate@ea.govt.nz
• For more information on the Power Innovation Pathway, visit www.ea.govt.nz/industry/power-innovation-pathway/

NOTES

• The Electricity Authority established the Power Innovation Pathway in September 2024 to bridge the gap between innovators and regulation and enable innovation to progress more efficiently within the electricity sector.
• 44 applications were received for the first priority round of the Pathway, which closed on 18 October 2024.
• The Power Innovation Pathway is an ongoing initiative and applications for general regulatory support remain open at www.ea.govt.nz/industry/power-innovation-pathway/. A second priority round for applicants to gain enhanced support from the Authority will be announced shortly.

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