Part of the problem facing the electricity industry is that traditional networks – the wires and poles – must be scaled to meet peak demand which may only be for five per cent
of the day. But there are alternative approaches.
Electricity distribution companies like ourselves, have an incentive to enable more efficient use of existing infrastructure by balancing out the gap between peaks and troughs in demand – what is known in the industry as “shaving the peak”.
We're already taking steps into the future, installing a Tesla Powerpack battery system in Glen Innes
. Equivalent to powering 450 homes for 2.3 hours, it stores power and helps ensure provision of reliable power by shaving the peaks. It also saves Aucklanders from paying for more costly traditional upgrades.
In this period of transition, it is important that there is a level playing field for utilities with the right incentives to encourage the sector’s natural evolution and ability to innovate. The more adaptive energy regulation is to innovation, the more likely it is for new technology and innovation to help achieve:
- downward pressure on electricity prices through more cost-effective technology solutions and new opportunities for consumers to participate in the market
- reduced environmental impact through better use of existing resources
- increased reliability through greater network flexibility and resilience
Ultimately, consumers will be the arbiters of the future of the electricity system and the relative benefits it offers to the status quo. It is more important than ever that all options are on the table.