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Electricity Sector Overview

Overview

The New Zealand electricity system is made up of:

Generation - the power stations that produce electricity;

Transmission - the wires, cables and other equipment (often called the national grid) that transport electricity at high voltages from power stations to distribution networks and to the largest industrial users ("direct connects");

Distribution - the local networks that carry electricity from the national grid to residential, commercial and smaller industrial users. Some power stations ("embedded generators") are connected directly into a distribution network rather than the national grid;

Consumers - ranging from large industrial users through to residential households. There are around 1.9 million electricity consumers in New Zealand;

Retailers - the participants that buy wholesale electricity and on-sell it to consumers at their individual premises;

Wholesale market - the spot market and contracts market where generators compete for the right to generate to meet demand, and retailers buy electricity for on-selling to consumers;

System Operation - real-time scheduling and dispatch of generation to match consumer demand and ensure power supply quality standards are met.

 

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