Winter power – let the market manage it

by frog

Transpower has just released a public statement of concern over the lake levels and their ability to cope over winter. As I have stated in many a prior post, the end of April is when you look at these things, (not February, Gerry), as well as look at prudent ways to manage any risk. It looks as though that is exactly what is happening.

“Action is already being taken by the industry to conserve water and this has seen a number of noticeable changes on the power system – high running of thermal plant in the North Island, greater southbound flow across the HVDC link and measures undertaken to relieve the constraints that this has been placing on the transmission system.”

“Current high spot prices will also encourage large industry customers to conserve electricity.”

“The industry does ask at this stage, that consumers be prudent with their energy use and to switch off any appliances at the wall, lights and heating/air conditioning that are not being used. We are not asking for consumers to go without electricity that they need – just to be mindful going forward of conserving electricity that is not being used.”

Many frogblog readers would think that I would be all over this like a rash. Not so. Prudent management is needed when you have such a high level of renewables in the system, and so far the market mechanisms are coping just fine. It appears that Transpower has been appointed to front what used to be called the winter group. The full press release shows that they are well prepared for further measures should the usual May rain not eventuate.

It’s all about risk management. I’m sure the urge to downplay the situation is rife amongst the politicians. Even Gerry Brownlee can’t demand both a free market and heavy handed government intervention at the same time, despite his lame efforts so far. Right now the engineers are saying not to panic and to do what little you can to save some power, without depriving yourself of the essentials. With the Taranaki Combined Cycle (360MW) plant now fully operational once again and the Pole 1 of Cook Straight back in northward service for winter peak events, we should be alright – providing we get just a bit more rain. (Down south, please, Wellington has had enough this week. ;-) )

Lake Levels 0508

frog says

Published in Economy, Work, & Welfare | Environment & Resource Management | Media by frog on Thu, May 1st, 2008   

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