Voltage support is provided by generating units or static equipment capable of producing or absorbing reactive power. This is done to maintain voltages on the system within Code limits.
We may enter into voltage support contracts with parties who can offer voltage support compliant with our technical requirements and the Code.
Voltage support is procured on a firm quantity procurement basis (via a monthly availability fee and/or a single event fee for a specified MVAr availability).
Costs
Voltage support costs are paid by distributors in the relevant zone* requiring the service. Distributors must pay an annually nominated peak kVAr charge and a monthly peak penalty charge (see clause 8.67 in the Code for details).
*Code Zone Definitions
- Zone 1 is all points of connection to the grid in the North Island on circuits north of Huntly (excluding the Thames Valley spur);
- Zone 2 is all points of connection to the grid in the North Island not in zone 1;
- Zone 3 is all points of connection to the grid in the South Island on circuits north of (and not including) Islington, Coleridge, Hororata and Papanui;
- Zone 4 is all points of connection to the grid in the South Island not in Zone 3 (from part 1 of Code).
Net purchase quantity assessment
We do not consider it necessary to procure voltage support in any zone at this time as we consider the reactive equipment currently available to be sufficient to enable us to meet our PPOs.