Powerco DSO INTSA Application

Delivering electrification through innovation – our DSO INSTA application

Our regulator the Commerce Commission encourages lines companies to explore new ways to deliver electricity and operate the network through its Innovation and Non-Traditional Solutions Allowance (INTSA). 

In June 2026 we applied to use $8.36m of our $20.1m INTSA allowance to help develop distribution system operator (DSO) capabilities over the 2027 and 2028 financial years. 

Our overall objective is to be operating as a DSO by 2030. 

You can read our application here. 

 

From asset manager to distribution system operator 

Aotearoa New Zealand’s electricity distributors need to undergo a fundamental role shift - from asset managers, to dynamic electricity system operators. That means using data, digital capabilities and customer engagement to optimise how electricity is moved and used around the network.  

This change presents a pathway to accelerate electrification and improve affordability for customers. It creates a highly utilised network that enables flexibility to connect more distributed energy resources (such as solar and batteries), optimise network investment and unlock opportunities for customers to monetise their energy use and assets. 

Networks overseas are making this transformation, too. And while there is much to learn internationally, developing and applying these capabilities (most for the first time) in the New Zealand context means navigating uncertainty while working quickly to deliver value to customers.  

We have been making progress on developing DSO capabilities through new customer offerings, trialling solutions, and investing in new technology.  

Here are some examples of that mahi to-date: 

Customer offerings – we were the first to offer a solar rebate across our network, hot water control, network capacity maps 

Trialling solutions – Our flexibility trial in Ōmokoroa, we're collaborating with other distribution networks to trial a flexibility market platform, EV smart charging. 

New technology – Our low-voltage visibility platform

 

Matching innovation with customer-focused delivery 

Our work so far has confirmed that an efficient and seamless journey to offering DSO services is going to be constrained by the limitations of traditional data, systems and processes.  

We need to adopt a range of interdependent and emerging capabilities and technologies. 

In our application we have outlined a programme roadmap based on delivering three interconnecting outcomes for customers; 

  • Developing deeper network and customer understanding to enable optimal customer-focused decision-making. 
  • Enabling and supporting products and markets that allow customers to define their relationship with energy.
  • Achieving a dynamically operated, stable and reliable network. 

By focusing on these outcomes we will prioritise initiatives that deliver customer value quickly, and maintain flexibility to respond to rapid developments in the energy market (such as new technology, market disruptors and regulation). This approach matches innovation with customer-focused delivery. 

We also aim to provide a proof of concept for distributors across Aotearoa to learn and collaborate for the benefit of all Kiwi.