Transpower New Zealand Limited
Encyclopedia
Transpower New Zealand Limited (TPNZ) is the state-owned enterprise
State-Owned Enterprises of New Zealand
State-owned enterprises in New Zealand are registered companies listed under Schedules 1 and 2 of the State-Owned Enterprises Act 1986...

 responsible for electric power transmission
Electric power transmission
Electric-power transmission is the bulk transfer of electrical energy, from generating power plants to Electrical substations located near demand centers...

 in New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...

. Transpower performs two major functions in the New Zealand Electricity Market
New Zealand Electricity Market
New Zealand's electricity market is regulated by the Electricity Industry Participation Code administered by the Electricity Authority . The Authority was established in November 2010 to replace the Electricity Commission and its publication explains how the market works.- Overview :Until 1987,...

. As the owner of the National Grid
National Grid (New Zealand)
The National Grid is the nationwide system of electric power transmission in New Zealand. The grid is owned and operated by Transpower New Zealand Limited, a State owned enterprise.- Transmission :- Existing :...

 it provides the infrastructure that allows consumers to have access to generation
Electricity generation
Electricity generation is the process of generating electric energy from other forms of energy.The fundamental principles of electricity generation were discovered during the 1820s and early 1830s by the British scientist Michael Faraday...

 from a wide range of sources, and enables competition in the wholesale energy market. As System Operator
Transmission system operator
File:Electricity grid simple- North America.svg|thumb|380px|right|Simplified diagram of AC electricity distribution from generation stations to consumersrect 2 243 235 438 Power stationrect 276 317 412 556 Transformer...

 it manages the real-time operation of the grid and the physical operation of the New Zealand Electricity Market.

Transpower was formed as a wholly owned subsidiary of the Electricity Corporation of New Zealand
Electricity Corporation of New Zealand
The Electricity Corporation of New Zealand Ltd is a New Zealand state-owned enterprise formed on 1 April 1987, as a transition entity in the process of deregulating the New Zealand electricity market...

 (ECNZ) in 1987. In 1994 it was separated from ECNZ and corporatised
Corporatization
Corporatization refers to the transformation of state assets or agencies into state-owned corporations in order to introduce corporate management techniques to their administration...

 to become a state-owned enterprise with its own board of directors and Ministerial shareholders. The shareholders are the Minister of Finance and the Minister of State-Owned Enterprises. The New Zealand Treasury
New Zealand Treasury
The New Zealand Treasury is a public sector organisation and the Government’s lead advisor on economic and financial policy. Its role is to help the Government improve economic performance and manage scarce resources...

 Crown Ownership Monitoring Unit monitors the performance of Transpower on behalf of the shareholding Ministers.

The role of the National Grid

The New Zealand national grid provides the means of transporting bulk electricity from where it is generated (by companies like Meridian Energy
Meridian Energy
Meridian Energy Limited is a New Zealand state-owned electricity generator and retailer. The company generates the largest proportion of New Zealand's electricity, generating 32 percent of the country's electricity in the year ending 31 December 2009, and is the fourth-equal largest retailer, with...

 and Mighty River Power) to cities, towns and some major industrial users like the aluminium smelter at Tiwai Point
Tiwai Point
thumb|[[Awarua Plain]] , Tiwai Point and [[Bluff, New Zealand|Bluff]] viewed from the [[International Space Station]] in 2008.Tiwai Point lies at the entrance to Bluff Harbour on the southern coast of the South Island of New Zealand...

.
Most of the electricity from the national grid is delivered to New Zealand’s homes and businesses by electricity distribution
Electric power distribution
File:Electricity grid simple- North America.svg|thumb|380px|right|Simplified diagram of AC electricity distribution from generation stations to consumers...

 companies like Vector
Vector Limited
Vector Limited is a multi-network infrastructure company in New Zealand. It is the national number one provider of electricity distribution, number one provider of gas transmission and distribution, number one provider of electricity and gas metering, number two wholesaler of LPG and number three...

 and Orion
Orion New Zealand Limited
Orion New Zealand Limited is an electricity distribution company, based in Christchurch, New Zealand.The company was formed under its current name in December 1998.Orion is owned by Christchurch City Council and Selwyn District Council...

. A few large industrial users are directly connected to the national grid.

A network of 220 kV transmission lines forms the core grid in the North and South Islands, and this is supplemented by 110 kV, 66 kV and 50 kV transmission lines, which connect the core grid to smaller load centres.
The two islands are connected via the HVDC link
HVDC Inter-Island
The HVDC Inter-Island link is a high-capacity, bipolar high-voltage direct current transmission system connecting the electricity transmission networks of New Zealand's two main islands to form the National Grid. The HVDC link is owned and operated by state-owned transmission company Transpower...

 which is New Zealand's only high voltage direct current (HVDC) system.

The revenue that Transpower receives for the provision of the transmission service is regulated by the Commerce Commission
Commerce Commission
The Commerce Commission is a New Zealand government agency charged with enforcing legislation that promotes competition in the country's markets and prohibits misleading and deceptive conduct by traders...

. The type of regulation is individual price-quality regulation, and came into effect on 1 April 2011. The individual price-quality path governs Transpower’s revenues for each pricing year, with the paths being reset either every four or five years.

The role of the System Operator

The role of the System Operator
Transmission system operator
File:Electricity grid simple- North America.svg|thumb|380px|right|Simplified diagram of AC electricity distribution from generation stations to consumersrect 2 243 235 438 Power stationrect 276 317 412 556 Transformer...

 is to manage the security of the power system in real time and co-ordinate the supply of and demand for electricity, in a manner that avoids fluctuations in frequency or interruptions of supply.
The System Operator is required to maintain a continuous (second-by-second) balance between electricity supply from power stations and demand from consumers, and also ensure the provision of reserves that will allow for sudden contingencies. The System Operator achieves this by determining the optimal combination of generating stations and reserve providers for each market trading period, instructing generators when and how much electricity to generate, and managing any contingent events that cause the balance between supply and demand to be disrupted. System Operations staff undertake this work using sophisticated energy modelling and communications systems.
In addition to its roles of real-time dispatch of generation and managing security, the System Operator also carries out investigations and planning to ensure that supply can meet demand and system security can be maintained during future trading periods. Examples of planning work may include co-ordinating generator and transmission outages, facilitating commissioning of new generating plant and procuring ancillary services to support power system operation.

The System Operator service is provided and funded under an agreement with the Electricity Authority
Electricity Authority (NZ)
The New Zealand Electricity Authority is an Independent Crown Entity responsible for the regulation of the New Zealand electricity market.In Authority was established in November 2010, following a government review of the electricity industry, and has a narrower focus on industry competition,...

.

See also

  • National Grid (New Zealand)
    National Grid (New Zealand)
    The National Grid is the nationwide system of electric power transmission in New Zealand. The grid is owned and operated by Transpower New Zealand Limited, a State owned enterprise.- Transmission :- Existing :...

  • Electricity sector in New Zealand
    Electricity sector in New Zealand
    The electricity sector in New Zealand uses mainly renewable energy sources such as hydropower, geothermal power and increasingly wind energy. The 70% share of renewable energy sources makes New Zealand one of the lowest carbon dioxide emitting countries in terms of electricity generation....

  • Electric power transmission
    Electric power transmission
    Electric-power transmission is the bulk transfer of electrical energy, from generating power plants to Electrical substations located near demand centers...

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