Electricity Sector in New Zealand - Organisation

Organisation

New Zealand's electricity sector is split into six distinct parts:

• Generation - Generation companies generate electricity at power stations, selling the electricity generated via the wholesale market to retailers while physical electricity is injected into either transmission lines (grid-connected generation) or distribution lines (embedded generation). Multiple companies generate power, but 92 percent of the generation sector is dominated by five companies: Contact Energy, Genesis Energy, Meridian Energy, Mighty River Power and Trustpower.
• Transmission - Transpower operates the national transmission network, consisting of 11,000 km of high voltage lines interconnecting generating power stations with grid exit points to supply distribution networks and with large industrial consumers (direct consumers) in each of New Zealand's two main islands. A 611 km high voltage direct current link (HVDC Inter-Island) connects the two islands' transmission networks together.
• Distribution - Distribution companies operate 150,000 km of medium and low-voltage lines interconnecting grid exit points with consumers and embedded generation. There are 28 distribution companies each serving a set geographic area.
• Retail - Retail companies buy electricity from generators and onsells it to consumers. Multiple companies retail electricity, including many generating companies, but 95 percent of the retail sector is dominated by five companies: Contact Energy, Genesis Energy, Mercury Energy, Meridian Energy and Trustpower.
• Consumption - Nearly two million consumers take electricity from the distribution networks or the transmission network and buy electricity from retailers for their use. Consumers range from typical households, which consume on average 8-9 MWh per year, to the Tiwai Point Aluminium Smelter, which consumes 5,400,000 MWh per year.
• Regulation - The New Zealand Electricity Authority is responsible for the management of the electricity industry, while Transpower as System Operator manages the electricity system in real time to ensure generation matches demand. Policy and governance is managed by the New Zealand Government and several Crown entities, including the Ministry of Economic Development, the Commerce Commission, and the Energy Efficiency and Conservation Authority.