PCE - Submission on the proposed reliability obligation to manage dry-year risk

The Parliamentary Commissioner for the Environment has suggested the Government take another look at options for managing dry-year electricity risk, arguing that potentially cost-effective alternatives were excluded too early in the process.

In a submission on the proposed Winter Energy Reliability Obligation, he questions why the suite of options available were not assessed within a robust cost-benefit or multi-criteria framework.

The submission also calls for a review of the modelling assumptions that underpin New Zealand's electricity security of supply assessments if the proposed obligation proceeds. While supporting further work to strengthen dry-year resilience, the Commissioner questioned why public procurement of LNG infrastructure is needed alongside a reliability obligation.