DG Connections Report.Pdf (1.234Mb)

Total Page:16

File Type:pdf, Size:1020Kb

DG Connections Report.Pdf (1.234Mb) new zealand centre for advanced engineering The Economic and System Impacts of increased DG Connection within New Zealand’s Electricity Networks The New Zealand Centre for Advanced Engineering November 2007 Mail: Private Bag 4800, University of Canterbury Campus, Christchurch 8140, New Zealand Street Address: 39 Creyke Road, Ilam, Christchurch, New Zealand Phone: 03 364 2478 Fax: 03 364 2069 e-mail: [email protected] www.caenz.com Page added to allow for double-sided printing The Economic and System Impacts of increased DG Connection within New Zealand’s Electricity Networks The New Zealand Centre for Advanced Engineering November 2007 CAENZ is an independent-think tank and research facilitator funded by grants and sponsorships. CAENZ’s mission is to advance social progress and economic growth for New Zealand through broadening national understanding of emerging technologies and facilitating early adoption of advanced technology solutions. www.caenz.com Prepared by: Geoff Cardwell, CAENZ; Bart van Campen, Energy Centre, University of Auckland with contributions from: Nikki Newham, University of Canterbury; Rowan Hooper, CAENZ; Russell Longuet, Exergi Consulting Limited Sponsors: CAENZ gratefully acknowledges the financial support of the following in undertaking this study: • Energy Centre, University of Auckland; • Mainpower New Zealand Limited; • Powerco; and • Transpower NZ Ltd. Approved by: RJ (George) Hooper Issued: November 2007 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, transmitted, or otherwise disseminated, in any form or by any means, except for the purposes of research or private study, criticism or review, without the prior permission of the Centre for Advanced Engineering. Copyright ©2007 New Zealand Centre for Advanced Engineering Address for Correspondence New Zealand Centre for Advanced Engineering University of Canterbury Campus Private Bag 4800 Christchurch 8140 New Zealand Phone: +64 3 364 2478 Fax: +63 3 364 2069 [email protected] CONTENTS 1 Introduction .............................................................................................................................................. 1 2 Scope of the current study ..................................................................................................................... 3 3 Distributed Generation Characteristics and System Performance .......................................................... 5 A definition of DG ................................................................................................................................... 5 Potential Impact of DG on network operation ....................................................................................... 6 Potential contributions/benefits of DG deployment .............................................................................. 10 DG Investment Criteria .......................................................................................................................... 12 Locational Value of DG .......................................................................................................................... 13 Overview ......................................................................................................................................... 13 DG Technology Type ........................................................................................................................ 14 Technological Impacts of DG on the Distribution Network ............................................................. 14 Value to Network Company ............................................................................................................ 15 Policy and DG Planning .................................................................................................................. 15 Value to Investor ............................................................................................................................. 16 Location of DG ................................................................................................................................ 17 4 DG in New Zealand ................................................................................................................................ 19 Commercial DG models ......................................................................................................................... 19 Existing DG in New Zealand ................................................................................................................. 22 DG Regulatory Environment ................................................................................................................. 23 Current Status of DG Regulation .................................................................................................... 23 DG Pricing Structures ..................................................................................................................... 24 Network connection Charges ......................................................................................................... 24 5 Case Study Analysis ............................................................................................................................. 27 PowerCo Case Study ............................................................................................................................ 27 General parameters of the case study ........................................................................................... 27 Description of the line company ................................................................................................... 27 Description of the network ............................................................................................................ 27 Network issues ............................................................................................................................... 29 DG profile within the network ....................................................................................................... 30 Powerco DG policy ......................................................................................................................... 30 Case studies ................................................................................................................................... 32 Palmerston North Council Landfill gas generation ...................................................................32 Wanganui Valley hydro scheme ................................................................................................ 34 Conclusions .................................................................................................................................... 35 Orion Case Study ................................................................................................................................. 35 General parameters of the case study ........................................................................................... 35 Description of the line company ................................................................................................... 36 Description of the network ............................................................................................................ 36 Network issues ............................................................................................................................... 36 DG profile within the network ....................................................................................................... 38 Orion DG policy .............................................................................................................................. 39 Contents Page i Case studies ................................................................................................................................... 42 Chateau on the Park - Diesel .................................................................................................... 42 Southbridge wind generator ..................................................................................................... 43 CCC landfill gas cogeneration engine ....................................................................................... 44 Conclusions .................................................................................................................................... 45 Network Tasman Case Study ............................................................................................................... 45 General parameters of the case study ........................................................................................... 45 Description of the line company ................................................................................................... 45 Description of the network ............................................................................................................ 46 Network issues ............................................................................................................................... 46 DG profile within the network ....................................................................................................... 47 Case study ..................................................................................................................................... 47 Onekaka mini hydro scheme ...................................................................................................
Recommended publications
  • Christchurch City Holdings Limited (CCHL)
    Christchurch City Holdings Limited Fixed Rate Bond Offer Presentation Arranger and Joint Lead Manager Joint Lead Manager Important Notice The offer of Bonds is being made in reliance upon the exclusion in clause 19 of schedule 1 of the Financial Markets Conduct Act 2013 (FMCA). Except for the interest rate and maturity date, the Bonds will have identical rights, privileges, limitations and conditions as CCHL’s $150,000,000 3.40% fixed rate bonds maturing on 6 December 2022 which are quoted on the NZX Debt Market under the ticker code CCH010 (the Quoted Bonds). The Bonds are of the same class as the Quoted Bonds for the purposes of the FMCA and the Financial Markets Conduct Regulations 2014. CCHL is subject to a disclosure obligation that requires it to notify certain material information to NZX Limited (NZX) for the purpose of that information being made available to participants in the market and that information can be found by visiting www.nzx.com/companies/CCH. The Quoted Bonds are the only debt securities of CCHL that are currently quoted and in the same class as the Bonds. Investors should look to the market price of the Quoted Bonds to find out how the market assesses the returns and risk premium for those bonds. 2 Disclaimer The information in this presentation is of a general nature and does not take into account your particular investment objectives, financial situation, tax position or circumstances. It does not constitute legal, financial, tax or investment advice and should not be relied on in connection with any contract or commitment whatsoever.
    [Show full text]
  • National Climate Change Risk Assessment for New Zealand: Technical Report
    National Climate Change Risk Assessment for New Zealand Arotakenga Tūraru mō te Huringa Āhuarangi o Āotearoa Technical report Pūrongo Whaihanga This document may be cited as: Ministry for the Environment. 2020. National Climate Change Risk Assessment for New Zealand – Arotakenga Tūraru mō te Huringa Āhuarangi o Āotearoa: Technical report – Pūrongo whaihanga. Wellington: Ministry for the Environment. Disclaimer The information in this publication is, according to the Ministry for the Environment’s best efforts, accurate at the time of publication. The information provided does not alter the laws of New Zealand and other official guidelines or requirements. Users should take specific advice from qualified professional people before undertaking any action, as a result of information obtained from this publication. The Ministry for the Environment does not accept any responsibility or liability whether in contract, tort, equity or otherwise, for any action taken as a result of reading, or reliance placed on the Ministry for the Environment because of having read any part, or all, of the information in this publication or for any error, or inadequacy, deficiency, flaw in or omission from the information provided in this publication. Acknowledgements Prepared for the Ministry for the Environment by a consortium led by AECOM, including Tonkin + Taylor Ltd, NIWA and Latitude and a number of independent contractors. Published in July 2020 by the Ministry for the Environment Manatū Mō Te Taiao PO Box 10362, Wellington 6143, New Zealand ISBN: 978-1-98-857995-5 (online) Publication number: ME 1508 © Crown copyright New Zealand 2020 This document is available on the Ministry for the Environment website: www.mfe.govt.nz.
    [Show full text]
  • EEA Conf Programme 2021
    Conference Programme - Provisional - 29 March 2021 WEDNESDAY, 30 JUNE 2021 8.30am REGISTRATION & TRADE EXHIBITION OPENS ROOM 3 ROOM 4 ROOMS 2 TO 4 9.30am CONFERENCE OPENING 9.35am Keynote Address 1 10.10am Keynote Address 2 10.45am ROOM 1 ROOM 2 ROOM 3 ROOM 4 CARBON ZERO SMART TECHNOLOGY FUTURE GRIDS PANEL SESSION 1 11.00am Architecture of the Future Low-Carbon, ConductorDown – A groundbreaking safety solution for New approaches to network planning. Details to be advised Resilient, Electrical Power System. overhead distribution networks. Richard Kingsford, WEL Networks Prof. Neville Watson, University of Rodger Griffiths, Electronet Technology Canterbury 11.30am Perverse incentives creating an impact on Practical experience of IEC61850 and future IoT for a smarter grid. network performance and New Zealand’s zero applications. Max Feickert, Energy Outcomes & Darren carbon future. Nathan Rich, Connetics Ltd Lucinsky, Electra Ltd Dougal McQueen & Junaid Qureshi, Aurora Energy 12.00pm The effects on the wider electricity network of Enhancing rating studies through soil digital twin. The use, development and improvement of heating decarbonisation projects. Nu’man Rashid, Unison Networks Ltd approaches for generation balancing to meet peak Campbell Rae, Connetics Ltd demand. Katherine Moore, Transpower NZ Ltd 12.30pm LUNCH ASSET MANAGEMENT INNOVATION FUTURE ENERGY SECURITY INNOVATIVE TECHNOLOGY SMART TECHNOLOGY 1.30pm Rethinking test data and reporting. An Electricity network infrastructure resilience through the Implementation of Whangamata’s
    [Show full text]
  • Christchurch City Holdings Limited Is a Wholly-Owned Subsidiary of Christchurch City Council
    Christchurch City Holdings Limited is a wholly-owned subsidiary of Christchurch City Council cChristchurchc Cityh Holdingsl Investing in the city’s infrastructure The primary purpose of Christchurch City Holdings Ltd (CCHL) is to invest in and promote the establishment of key infrastructure, and this now extends to assisting the Council in the rebuild and redevelopment of Christchurch following the Canterbury earthquakes. CCHL will continue to invest in existing and new infrastructural assets such as the electricity distribution network, the airport, port, transport and high speed broadband. CCHL’s strategic approach is to identify infrastructural needs that are not or cannot be filled by the private sector or existing Council operations, then take a role in helping to meet those needs through joint ventures, public-private partnerships, establishing new entities or simply acting as a catalyst for others. Appropriate investment is encouraged and, if necessary, facilitated by CCHL in its trading companies when significant upgrades are required to existing infrastructural assets – recent examples being the establishment and funding of Enable Services, and the provision of some of the funding requirements for the construction of the new airport terminal. CCHL is supportive of its companies as they deal with post-earthquake repairs and rebuild of assets and markets. 2 About CCHL Christchurch City Holdings Ltd (CCHL) is the commercial and investment arm of Christchurch City Council. The company is responsible for managing the Council’s investment in eight fully or partly-owned Council-controlled trading organisations – Orion New Zealand Ltd, Christchurch International Airport Ltd, Lyttelton Port Company Ltd, Enable Services Ltd, City Care CHRISTCHURCH Ltd, Red Bus Ltd, EcoCentral Ltd and Selwyn CITY HOLDINGS Plantation Board Ltd.
    [Show full text]
  • 2012 Annual Report
    ANNUAL REPORT SECTION ONE: BUSINESS REVIEW 2 Year at a Glance 4 Chairman’s Report 6 Board of Directors 8 Chief Executive’s Report 10 Executive Team 18 Strategic Direction 20 Aeronautical Development 22 SECTION TWO: SUSTAINABLE GROWTH 24 Environment 25 Workplace Safety 29 Community Involvement 30 Corporate Social Responsibility 31 SECTION THREE: SUMMARY FINANCIAL STATEMENTS 32 Statement of Financial Performance 34 Statement of Comprehensive Income 35 Statement of Changes in Equity 35 Statement of Financial Position 36 Statement of Cash Flows 37 Accounting Policies 38 Comparison of Actual to Forecast Results 40 Five Year Summary 41 Financial Performance Overview 42 Directory 44 VOLUME TWO: FULL FINANCIAL STATEMENTS (available at www.cial.co.nz or on request) 2 BUSINESS REVIEW CHRISTCHURCH INTERNATIONAL AIRPORT | GENERATING VALUE & EMPLOYMENT FACTS ABOUT 3 CHRISTCHURCH INTERNATIONAL AIRPORT ROLE The airport company, sometimes referred to as The airport company is responsible for ensuring CIAL, is responsible for running Christchurch the airport meets all safety and compliance Airport. It owns the airport terminal and airfields, requirements for passengers, visitors and as well as more than 800 hectares of land. aircraft. As part of its safety provisions, the airport has its own Fire Service with four large Regular activities for the airport company state of the art fire-fighting vehicles, along with include ensuring the terminal building is several smaller vehicles, 35 firemen and a full- safe, clean and warm, patrolling the airfield, time Wildlife Officer whose role is to keep the maintaining runways, managing car parking airfield as free of birds and pests as possible. facilities and ensuring airlines, passengers, visitors and tenants have the services they need.
    [Show full text]
  • Genesis Energy
    NEW ZEALAND Genesis Energy 13 June 2008 Performance evaluation Genesis Energy equity valuation Macquarie Research’s discounted cashflow based equity valuation for Genesis Energy is $2,115m (nominal WACC 9.17%, asset beta 0.60, TGR 3.0%). Forecast financial model A detailed financial model with explicit forecasts out to 2030 has been completed and is summarised through this report. 12 month and 24 month target valuations Our 12 month ($2,257m) and 24 month ($2,433m) target valuations for the company have been derived by rolling forward the discounted cashflow model 12 and 24 months respectively and deducting from these values the forecast 12 and 24 month dividends to the Crown. Financial model assumptions and commentary We have assessed the sensitivity of our equity valuation to a wide range of inputs. Broadly, these sensitivities are divided into five categories: generation Inside assumptions, electricity supply, gas supply, financials and price path. Performance evaluation report 2 This report highlights and discusses a number of key model input assumptions: Valuation summary 5 ⇒ The extent to which Huntly coal is backed off; Financial model assumptions and ⇒ The company’s retail and SME pricing position; commentary 11 ⇒ Future fuel cost position; Financial statements summary 18 ⇒ Genesis Energy Retail Gas margins; and Genesis Energy historic and forecast performance 21 ⇒ Wholesale electricity price paths. Historic and forecast performance versus SCI Financial flexibility and generation development 22 We have analysed the spread between Genesis Energy’s return on funds and its WACC to gauge its historic and forecast financial performance; Alternative valuation methodologies 23 We have compared our forecasts for Genesis Energy against those outlined in its Statement of Corporate Intent (SCI).
    [Show full text]
  • Confidential Version
    Public Version ISSN No. 0114-2720 11711/900832 Decision No. 682 Determination pursuant to the Electricity Industry Reform Act 1998 (EIR Act) in the matter of an application for exemption, of a prohibited involvement in an electricity lines business and an electricity generation and sales business, from the application of the EIR Act. The application is made by: MARK TUME The Commission: M N Berry P J M Taylor Summary of Application: Application by Mark Tume for exemption from the application of the EIR Act in respect of certain prohibited involvements in Powerco Limited’s lines and in the generation and sale of electricity by TrustPower Limited. Determination: The Commission, pursuant to section 81 of the EIR Act, determines to grant an exemption from compliance with section 17(2)(a) of the EIR Act, but with the conditions specified in the Notice of Exemption. Date of Determination: 10 November 2009 CONFIDENTIAL MATERIAL IN THIS REPORT IS CONTAINED IN SQUARE BRACKETS 2 CONTENTS INTRODUCTION .........................................................................................................3 COMMISSION PROCEDURES...................................................................................3 General.......................................................................................................................3 Criteria Used by the Commission to Consider Exemption Applications ..................3 PARTIES .......................................................................................................................5
    [Show full text]
  • Commerce Commission CPP Open Letter July 2018
    First Gas Limited 42 Connett Road West, Bell Block 31 July 2018 Private Bag 2020, New Plymouth, 4342 New Zealand P +64 6 755 0861 F +64 6 759 6509 Matthew Lewer Manager, Regulation Development Commerce Commission PO Box 2351 WELLINGTON Sent via email: [email protected] Dear Matthew Feedback on recent CPP processes This is First Gas’ submission on the Commerce Commission’s open letter requesting feedback on recent customised price-quality path (CPP) processes dated 3 July 2018. Summary of key points First Gas welcomes the Commission’s review of recent CPPs. The findings of this work are of interest to us as we consider a CPP application for our gas transmission business to address the risk of coastal erosion near our pipelines at White Cliffs in northern Taranaki. We disagree with the Commission’s view that the principle of proportionate scrutiny is sufficiently defined in the Input Methodologies. We consider that the Wellington Electricity (WELL) CPP process demonstrates the value of considering high-priority, specific resilience issues outside of a full CPP process. This ensures a timely response to identified major resilience risks, without the resource required for a full CPP. Most of the other topics canvassed in the open letter set out activities that we expect any prudent regulated business would undertake prior to submitting a CPP application. These activities require a degree of flexibility to reflect the drivers of the individual CPP applications, so we do not support these being codified into the CPP requirements. We expand on these points below. Importance of consultation on CPP processes and experience to date Industry consultation and feedback on the CPP process is of considerable interest to First Gas, as we are currently considering a CPP application for our White Cliffs realignment project.
    [Show full text]
  • Corporate and Financial Committee Agenda
    CORPORATE AND FINANCIAL COMMITTEE AGENDA FRIDAY 5 APRIL 2013 AT 9AM IN COMMITTEE ROOM 1, CIVIC OFFICES Committee: Councillor Helen Broughton (Chairperson), Councillors Ngaire Button, Tim Carter, Jimmy Chen, Jamie Gough and Yani Johanson Principal Adviser Committee Adviser Paul Anderson Rachael Brown Telephone: 941-8528 Telephone: 941-5249 PART A - MATTERS REQUIRING A COUNCIL DECISION PART B - REPORTS FOR INFORMATION PART C - DELEGATED DECISIONS INDEX ITEM DESCRIPTION PAGE NO. NO. PART C 1. APOLOGIES 1 PART B 2. DEPUTATIONS BY APPOINTMENT 1 PART A 3. DRAFT STATEMENTS OF INTENT FOR CIVIC BUILDING LIMITED, TUAM LIMITED, 3 WORLD BUSKERS’ FESTIVAL TRUST, ROD DONALD BANKS PENINSULA TRUST AND RICCARTON BUSH TRUST PART A 4. DRAFT STATEMENTS OF INTENT FOR CHRISTCHURCH AGENCY FOR ENERGY 5 TRUST BOARD, VBASE LIMITED AND NEW ZEALAND LOCAL GOVERNMENT FUNDING AGENCY LIMITED PART A 5. DRAFT STATEMENTS OF INTENT FOR CHRISTCHURCH CITY HOLDINGS LIMITED, 51 ORION NEW ZEALAND LIMITED, CHRISTCHURCH INTERNATIONAL AIRPORT LIMITED, LYTTELTON PORT COMPANY LIMITED, ENABLE SERVICES LIMITED, CITY CARE LIMITED, RED BUS LIMITED, ECOCENTRAL LIMITED AND CANTERBURY DEVELOPMENT CORPORATION HOLDINGS LIMITED PART A 6. 2012/13 HALF YEAR FINANCIAL STATEMENTS FOR CHRISTCHURCH CITY 267 HOLDINGS LIMITED AND NEW ZEALAND LOCAL GOVERNMENT FUNDING AGENCY LIMITED PART A 7. PROPERTY OPTIONS 36 WELLES STREET CENTRAL CITY 305 PART B 8. EARTHQUAKE FINANCIAL REPORT FOR FEBRUARY 2013 309 PART B 9. CORPORATE FINANCE REPORT FOR PERIOD ENDED 28 FEBRUARY 2013 317 We’re on the Web! www.ccc.govt.nz/Council/Agendas/ CORPORATE AND FINANCIAL COMMITTEE 5. 4. 2013 PART B 10. THE APPOINTMENT OF DIRECTORS TO NON-CCHL MANAGED COUNCIL- 323 CONTROLLED ORGANISATIONS.
    [Show full text]
  • Joint Memorandum of Counsel for Orion New Zealand Limited and Christchurch City Council Relating to Drafting Matters Arising from Residential (Part) Stage 1 Decision
    Before the Independent Hearings Panel at Christchurch under: the Resource Management Act 1991 and the Canterbury Earthquake (Christchurch Replacement District Plan) Order 2014 in the matter of: submissions and further submissions in relation to the proposed Christchurch Replacement District Plan and: The Residential (part) Stage 1 Proposal and: Orion New Zealand Limited Submitter 922 / F-1339 and: Christchurch City Council Joint Memorandum of counsel for Orion New Zealand Limited and Christchurch City Council relating to drafting matters arising from Residential (part) Stage 1 decision Date: 15 January 2016 REFERENCE: JM Appleyard ([email protected]) 2 MEMORANDUM OF COUNSEL FOR ORION NEW ZEALAND LIMITED AND CHRISTCHURCH CITY COUNCIL RELATING TO DRAFTING MATTERS ARISING FROM RESIDENTIAL (PART) STAGE 1 DECISION May it please the Panel: 1 This memorandum is filed on behalf of Orion New Zealand Limited (Orion), submitter 922 and the Christchurch City Council (Council) in respect of Decision 10, dated 11 December 2015, which outlines the Panel’s decision on the stage 1 Residential (part) proposal. 2 Since submitting its amended memorandum dated 16th December 2015, errors in the referencing of provisions have come to Orion’s attention. Those errors relate to the reference made to the identified non-complying rule provision numbers that Orion brought to the Panel’s attention. The error occurs in three places within the memorandum and is identified and corrected in this memorandum. 3 Paragraph 3 of the amended memorandum requires amendment as follows (shown in underlining and strikethrough): Orion notes that in Rule 14.4.2.5 NC2 14.2.2.5 NC7, 14.3.2.5 NC3, and 14.4.2.5 NC2 there is no clause b.
    [Show full text]
  • 2010 Default Price-Quality Path Compliance Assessment Decision
    COMMERCE COMMISSION Regulation of Electricity Lines Businesses Price-Quality Regulation Reasons for Not Declaring Control of the following Non-exempt Electricity Distribution Businesses: Alpine Energy Limited, Centralines Limited, Eastland Network Limited, Horizon Energy Distribution Limited, Nelson Electricity Limited, Network Tasman Limited, Orion New Zealand Limited, OtagoNet Joint Venture, Powerco Limited, The Lines Company Limited, Top Energy Limited and Wellington Electricity Lines Limited 1 April 2011 CONTENTS PAGE INTRODUCTION .................................................................................................. 3 Purpose and Scope .............................................................................................. 3 Electricity Distribution Businesses Assessed ................................................... 3 Statutory Framework ......................................................................................... 4 Consumer-owned .................................................................................................................. 4 Process and Analytical Framework Applied ................................................... 5 Overview of the 2009/10 Assessment ................................................................ 6 Breaches of the Price Path ................................................................................................... 6 Breaches of the Quality Threshold ..................................................................................... 11 DECISIONS –
    [Show full text]
  • Orion New Zealand Limited
    Orion New Zealand Limited Statement of intent For FY19, FY20 and FY21 Approved by the Orion board 5 April 2018 Orion – SOI for FY19, FY20 and FY21 Contents A Introduction 3 B Our key roles and our objectives 4 C Our governance 7 D Our capital structure and our dividends 9 E Acquisitions and divestments 9 F Our relationships with our shareholders and with the wider CCC/SDC group 9 G How we will report to our shareholders 10 H The commercial value of our shareholders' investment 10 Appendix 1 Our financial performance targets 11 Appendix 2 Our network reliability targets 12 Appendix 3 Our network development targets 13 Appendix 4 Our environmental targets 14 Appendix 5 Our health and safety targets 16 Appendix 6 Our community and employment targets 17 Head office Directors 565 Wairakei Road Nick Miller – chairman PO Box 13896 John Austin Christchurch 8141 Nicola Crauford New Zealand Bruce Gemmell Jason McDonald Geoff Vazey Phone: + 64 3 363 9898 Fax: + 64 3 363 9899 Chief Executive Officer Email: [email protected] Rob Jamieson Website: oriongroup.co.nz Twitter: twitter.com/orionnz Orion – SOI for FY19, FY20 and FY21 Page 2 of 17 A Introduction Our customers rely on the electricity we deliver in Christchurch and central Canterbury. Keeping this vital ‘lifelines’ infrastructure operating safely and sustainably is our top priority. This statement of intent (SOI) sets out Orion New Zealand Limited’s (Orion’s) overall intentions and objectives. This SOI also covers our wholly-owned subsidiary companies, Connetics Limited and Orion New Zealand Ventures Limited. Orion and its subsidiaries are energy companies, pursuant to the Energy Companies Act 1992.
    [Show full text]