Code: EL0

Objective: To provide an understanding of the essential elements of the NZ Electricity Supply system and the wholesale electricity market.

Prerequisites: None

The course includes a number of rounds of our spot market trading game which simulates the process by which traders submit offers to generate into the market each half hour.  It’s a lot of fun!

Introduction

Market Overview

Spot, hedge, retail, frequency keeping and ancillary markets

Cash flows for generators and retailers

Generation, retail, transmission, distribution, consumers

Governing legislation and market rules

Electricity power flows and concepts

Energy conversions and units

Transmission: The Grid

AC grid

The HVDC link and inter-island power flows

Losses and line limits

Transmission and line charges

Demand

Total demand for electricity in New Zealand

Demand growth -  history and projections

Seasonal demand profiles

Embedded generation and grid off-take

Metering and reconciliation

Supply

Types of generator and basic characteristics, fuels and renewable sources, generation by fuel type

Hydro, thermal, geothermal, wind and cogeneration

The wholesale spot and ancillary markets

Role of the System Operator in Dispatch

Offers & Bids

Market models

Reserves and frequency keeping

Cost of Supply

Fuel use and efficiency of thermal generators, heat rate

Fuel cost calculations

Long run and short run costs

Electricity Price Behaviour

Understanding historical price patterns and their origin

The Retail and hedge Markets

Retail TOU contracts

Hedge contracts

NB:          Course material may vary from the above on the day.