Powerco secures $8.36 million to accelerate smarter electricity network capabilities
Powerco has secured $8.36 million from the Commerce Commission's Innovation and Non-Traditional Solutions Allowance (INTSA) to support the development of distribution system operator (DSO) capabilities.
The approved allowance is a significant milestone in Powerco’s journey to becoming a functioning DSO by 2030, operating a dynamic and efficient electricity network in partnership with customers. It will support the people, resources and delivery capability needed to accelerate the programme of work.
“Transforming into a DSO will create a more flexible network, enable greater uptake and use of distributed energy resources such as solar and batteries, support optimal network investment decisions, and create more opportunities for customers to benefit from their energy use and assets,” says Ryno Verster, Powerco’s DSO Programme Director.
“A DSO transformation in Aotearoa New Zealand is still an emerging concept, requiring significant innovation across technology, customer solutions, network operations and regulation. The acceptance of our INTSA request provides Powerco with what we need to accelerate the innovation, navigate uncertainty, and focus on delivering better customer outcomes.
“It also positions Powerco to play its part in addressing New Zealand’s energy trilemma – affordability, security and sustainability - while generating insights that can benefit all electricity users.”
The approved INTSA amount will be used over FY27-28 to build the capabilities Powerco needs to show how the DSO model could work in New Zealand, providing insights into what works well and where further development is needed. The programme will also help inform regulatory settings, including the next default price-quality path DPP5 reset.
A DSO uses data and digital technology and insights to actively manage the electricity network in near real-time, making better use of existing infrastructure through flexibility and other operational signals. It also leverages the growing uptake of distributed generation, supporting electrification and growth across the network.
Read more about Powerco’s DSO work programme.
The approved allowance is a significant milestone in Powerco’s journey to becoming a functioning DSO by 2030, operating a dynamic and efficient electricity network in partnership with customers. It will support the people, resources and delivery capability needed to accelerate the programme of work.
“Transforming into a DSO will create a more flexible network, enable greater uptake and use of distributed energy resources such as solar and batteries, support optimal network investment decisions, and create more opportunities for customers to benefit from their energy use and assets,” says Ryno Verster, Powerco’s DSO Programme Director.
“A DSO transformation in Aotearoa New Zealand is still an emerging concept, requiring significant innovation across technology, customer solutions, network operations and regulation. The acceptance of our INTSA request provides Powerco with what we need to accelerate the innovation, navigate uncertainty, and focus on delivering better customer outcomes.
“It also positions Powerco to play its part in addressing New Zealand’s energy trilemma – affordability, security and sustainability - while generating insights that can benefit all electricity users.”
The approved INTSA amount will be used over FY27-28 to build the capabilities Powerco needs to show how the DSO model could work in New Zealand, providing insights into what works well and where further development is needed. The programme will also help inform regulatory settings, including the next default price-quality path DPP5 reset.
A DSO uses data and digital technology and insights to actively manage the electricity network in near real-time, making better use of existing infrastructure through flexibility and other operational signals. It also leverages the growing uptake of distributed generation, supporting electrification and growth across the network.
Read more about Powerco’s DSO work programme.
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