In accordance with section 11 of the Electricity Industry Act 2010 (“Act”), the Electricity Authority gives the following notice.

Notice

1. Title and commencement

(1) This notice is the Electricity Industry (Exemption No. 350 (Meridian Energy Limited)) Exemption Notice 2024.

(2) This notice comes into force on 4 October 2024.

2. Exemption

(1) Meridian Energy Limited (“Meridian”) is exempted from complying with the obligations in:

1. clause 8.19(5) of the Code. This provision requires each North Island connected asset owner to ensure it has established and maintained automatic under-frequency load shedding (“AUFLS”) in block sizes and with relay settings in accordance with the technical codes;
2. clause 6 of Appendix B of Technical Code A of Schedule 8.3. This provision provides for North Island connected asset owners to provide profile information annually, periodically test AUFLS systems and provide results to the system operator;
3. clause 7 of Technical Code B of Schedule 8.3. This provision provides for North Island connected asset owners to ensure at all times it has an AUFLS system installed and maintained that will automatically disconnect demand in specified block sizes at specified frequency settings; and
4. the AUFLS technical requirements report (“ATR”) incorporated by reference under Schedule 8.6. The ATR provides the technical requirements for North Island connected asset owners AUFLS systems with the electrical disconnection of four blocks of demand.

(2) This exemption applies to Meridian’s battery energy storage system (“BESS”) connected to the Bream Bay grid exit point.

3. Term

(1) This exemption expires on the earlier of:

1. 31 December 2030; or
2. any Code amendment that would in effect exclude BESS from being subject to AUFLS obligations.

4. Reasons for granting the exemption

(1) The reasons for granting this exemption are:

1. by enabling of increased reserves offers, the exemption would improve security of supply and promote the reliable supply of electricity to consumers particularly in the North Island during peak periods or system events, and
2. by enabling more reserves would increase competition in the reserves market. This would enable a more efficient market solution to be reached at times when the BESS reserve offers are priced lower than alternatives.
3. the exemption meets the test in section 11(2)(b) of the Act. Section 11(2)(b) applies where exempting the participant from the requirement to comply with the Code would better achieve the Authorities objectives than requiring compliance.

Dated at Wellington this 3rd day of October 2024.

For and on behalf of the Electricity Authority:

ALLAN DAWSON, Member, Electricity Authority.