Our energy future involves a redistribution of power

The recent announcement of a new $200 million solar farm in Ruakākā will no doubt be welcome news to Northland communities, as a positive step towards regional energy resilience.

Our review of the Northland transmission tower collapse, released by Minister for Energy Simeon Brown last week, highlighted the important role local power generation plays when the national grid supply is compromised.

One of our key recommendations is that Transpower engage with stakeholders in all areas vulnerable to high impact electricity supply events, to develop electricity generation plans. We've also asked for improved coordination and cooperation to ensure that in the event of a national grid outage, locally generated electricity can be temporarily isolated from the grid in 'electrical islands' to keep homes and businesses connected.

Encouraging and enabling investment in local electricity generation is critical to building regional resilience, and as the electricity markets regulator we play a key role in this. We're having to change the way we regulate and review and update the legacy rules, so they support and encourage the necessary innovation and investment.

The Northland review identifies new areas for our analysis and action to ensure regulation does promote new solar and wind generation investment, including uptake of rooftop solar and batteries. These recommendations complement the work we're already doing in this space.

The Energy Competition Task Force, jointly run with the Commerce Commission, is key to ensuring the necessary changes happen quickly. The Task Force is working at-speed to identify ways to encourage new power generators and independent retailers into the market, increase competition and provide more affordable options for consumers and businesses. While the Task Force will engage with and seek feedback from the sector to inform its work, we are firmly focused on achieving a system that benefits New Zealand electricity consumers.

We are enabling a future electricity system where energy flows from renewable power sources to homes and businesses, and from homes and businesses with solar panels and batteries back into the network. And that rewards businesses and consumers for participating. From large solar farms like the one planned for Ruakākā to residential roof-top systems with battery energy storage, bringing power generation closer to where people are using it is key to our energy future - and more resilient communities.

The Electricity Authority is actively working to support this, to build a secure and resilient, accessible and efficient energy system that improves long-term outcomes for businesses, consumers, and New Zealand.