New Zealand is transitioning to a future with 100% renewable electricity from 2030 and a net zero carbon economy by 2050. During the transition, the electricity industry needs security of gas supply. Major gas users also need certainty and transparency for their operations.
Gas Industry Company has begun an investigation of the issues. Its focus: Whether current market, commercial and regulatory settings that provide for gas availability and flexibility are fit for purpose in supporting the transition.
The project was initiated by the Minister of Energy and Resources, who has asked in a letter:
- how current contractual arrangements, including tendering processes, affect overall availability and flexibility of gas supply
- how current market, commercial and regulatory settings:
- support security of supply in the electricity market (particularly during periods of heightened demand), and
- provide major gas users with sufficient certainty/transparency about gas supply for their operations,
and whether they are fit for purpose during the transition.