PROJECTS
Electricity Sector Regulatory Framework, New Zealand
The problem
Regulations developed years ago were hindering investment in disruptive energy sector technologies in New Zealand. This electricity sector regulatory framework forbade distribution companies from owning generation assets or selling electricity. New technologies, such a battery storage, provide both monopoly (network) and competitive services. This blurs the line between what is a regulated monopoly and what is in the competitive market, making the application of the existing regulatory model uncertain and less efficient.
How we helped
Castalia developed a framework for how regulation of the electricity sector should respond to emerging technologies such as battery storage. We analyzed how other countries were approaching the technological change in electricity markets, identified what changes were needed in New Zealand, and recommended how to regulate distribution companies’ investment in storage and other disruptive technologies.
Impact
Our framework was used by policy-makers as part of an ongoing review of the electricity sector.
