Electricity emergency reserve scheme proposed to get through winter 2026

Under the proposal Transpower would ask if electricity users could reduce demand and be paid for it. (Image: NZME)

Thu, 31 Jul 2025

The Electricity Authority is looking at ways for electricity users to offer to cut their demand and be paid for it when the system is under extreme stress.The regulator is consulting on setting up an Emergency Reserve Scheme (ERS) to unlock industrial demand flexibility.Currently some large industrial users have arrangements with generators to cut demand when there is an energy shortage. These deals, like the arrangement between the Tiwai Point aluminium smelter, Meridian and others, are with the generators and involve compensation being paid b...

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