Demand side participation

This page provides information around the various ways for the demand side to participate in the wholesale electricity market.

In summary the methods of demand side participation are

  • Dispatchable Demand
  • Dispatch Notified Load
  • Difference Bids
  • Interruptible Load

Dispatchable Demand

A Dispatchable Demand (DD) regime enables demand-side participants to compete with generators to set the spot price and be able to respond more efficiently to wholesale market conditions.

Best suited to large consumers seeking better cost control (usually direct connect consumers), who are able to modify all or part of their electricity consumption at short notice, can use a dispatchable demand regime. They can reduce their electricity demand in accordance with their spot market bids and better manage their electricity costs.  Dispatchable demand is a cost avoidance mechanism, there are no direct payments made for the reduction in load.

For more detailed information around Dispatchable Demand see this document. (GL-EA-1052)

Dispatch Notification Load

Dispatch Notification Load (DNL) is a low-cost path to allow smaller scale aggregated resources to directly participate in the spot market, similarly to DD. The owners of small-scale flexible load, such as EV chargers, solar and battery installations or commercial buildings, could use these resources to manage spot price exposure for their retailers.

For more detailed information around Dispatch Notified Load see this document. (GL-EA-1052)

Difference Bids

Difference bids allow consumers or aggregators to signal their price sensitivity in the forecast schedules and assess the impact of their resources by comparing the non-responsive and price responsive schedule results. The difference bids are not binding and are not included in the dispatch schedules. Participants can signal both a reduction in load at higher prices and an increase in load at lower prices. Difference bids can be submitted at conforming Grid Exit Points (GXPs) only.

Interruptible Load

Interruptible load (IL) is an instantaneous reserve product which is used for the short-term management of frequency. It is offered to the market by load consumers and gets scheduled by SPD and dispatched in real time. IL providers are paid the marginal reserve price for their availability. DD participants can also offer their load in the reserve market as IL. The disconnection of load is automatically triggered by drop in system frequency. It is regularly tested by the System Operator to ensure it can meet our requirements for security.

Intention to Submit Initial Bids

Purchasers must give at least five business days' notice in writing to the system operator before making an offer or bid for the first time.

The Purchaser Notice of Initial Bid forms are to be completed and emailed to [email protected].

Dispatch-Capable Load Station Setup

A dispatch-capable load station (DCLS), is an electricity-using device or group of devices that has been approved by Transpower's system operator and is capable of being dispatched.

The Electricity Industry Participation Code allows purchasers to apply to the System Operator to become a dispatch-capable load station (DCLS). This is a requirement for both DD and DNL.

For more information on how to apply to become a DCLS, please contact the Market Operations team at [email protected] or (04) 590 7470.

Application Information and Forms