Pursuant to clause 8 of Schedule 13.4 of the Electricity Industry Participation Code 2010 ("Code"), the Electricity Authority ("Authority") gives the following notice.
N o t i c e
1. Title and commencement-(1) This notice is the Electricity Industry Participation (Approval as Industrial Co-generating Station (No 4) Norske Skog Tasman Limited)) Notice 2013.
(2) This notice comes into force on Friday 8 November 2013.
2. Approval-The following generating units, owned by Norske Skog Tasman Limited ("Norske Skog"), are approved as an industrial co-generating station in accordance with Schedule 13.4 of the Code:
(a) Generating units:
(i) TA2, maximum rating 18.7 MW; and
(ii) TA3, maximum rating 9.0 MW; and
(b) stand-alone Ormat geothermal generating units:
(i) KA24, maximum rating 9.9 MW; and
(ii) TOPP1, maximum rating 21.0 MW.
3. Condition-This approval is granted on the condition that the industrial co-generating station must comply with dispatch instructions if:
(a) the system operator has issued a formal grid emergency or warning notice applicable to the area supplied by grid exit points in the Kawerau area; or
(b) a constraint situation, which is directly impacted by the Norske Skog industrial co-generating station, exists within the area supplied by grid exit points in the Kawerau area.
4. Reasons for granting the approval-The reasons for granting this approval are:
(a) the system operator has provided conditional approval;
(b) the generating station fits the definition of industrial co-generating station in Part 1 of the Code. Two of the four generating units that make up the station derive their fuel source from a co-located industrial process; the other two provide some of the electricity they generate into the co-located industrial process;
(c) Norske Skog is unable to comply with the standard dispatch tolerance in clause 13.86 of the Code because of the close link between the on-site industrial process and the generating units; and
(d) granting approval is in accordance with the Authority's statutory objective, as stated in
section 15 of the Electricity Industry Act 2010.
The Authority considers that this application promotes the efficient operation of Norske Skog's pulp mill and generating station. Approval will allow the most efficient operation of its generation plant (with corresponding benefits for competition and reliability) without the risk of the on-going administration costs associated with addressing Code breaches that result from Norske Skog's inability to comply with dispatch instructions, and without affecting the system operator's ability to achieve its principal performance obligations.
Dated at Wellington this 21st day of October 2013.
For and on behalf of the Electricity Authority:
DR THOMAS BRENT LAYTON, Chairperson, Electricity Authority.