Electricity demand and generation scenarios

Independent demand and generation scenarios are a key reference point for preparing and assessing major grid investment proposals by Transpower. Transpower will be required to use the Electricity Demand and Generation Scenarios (EDGS) when developing major capital expenditure proposals.

Electricity demand and generation scenarios 2016

Finalised Electricity Demand and Generation Scenarios (EDGS) were published on 29 August 2016. The EDGS explores future levels of electricity demand and how it could be met out to 2050 under five different scenarios.

Earlier EDGS publications

Background information

The 2009 Ministerial Review of Electricity Market Performance proposed measures to improve the performance of the electricity market, its institutions and its governance. As a result, on 1 November 2010, the Electricity Commission was disestablished with most of its functions being transferred to the new Electricity Authority.

Responsibility for approving Transpower’s grid expenditure plans transferred to the Commerce Commission and the Ministry of Business, Innovation and Employment is now responsible for preparing demand and generation scenarios to feed into this process. The Electricity Demand and Generation Scenarios (EDGS) will replace the demand and generation scenarios contained in the 2010 Statement of Opportunities (SOO) (produced by the Electricity Commission).

Transpower proposals are subject to Commerce Commission approval under the Transpower Capital Expenditure Input Methodology (Capex IM), which was finalised in January 2012. The Capex IM is part of the Commerce Commission's individual price-quality path (IPP) regulation of Transpower's electricity transmission services under Subpart 7 of Part 4 of the Commerce Act 1986. Under the Capex IM, the EDGS have an explicit role in the “investment test” for approving Transpower’s proposals for major capital expenditure.

Relevant links

Transpower Capital Expenditure Input Methodology (Capex IM) on Commerce Commission website

Statement of Opportunities (SOO) – archive on Electricity Authority website

2009 Ministerial Review of the Electricity Market

Feedback and discussion welcomed

In addition to the formal engagement process, the Ministry welcomes stakeholder feedback at any time. If you would like to contact us, please email: edgs@mbie.govt.nz.