System Operator Hydro Risk Curve Assumptions - September 2018 - Effective 25 September 2018 - Transpower

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System Operator Hydro Risk Curve Assumptions - September 2018 - Effective 25 September 2018 - Transpower
Hydro Risk Curve Assumptions –
September 2018
Effective 25 September 2018

System Operator
Hydro Risk Curve Assumptions - September 2018

       IMPORTANT

       Disclaimer
       The information in this document is provided in good-faith and represents the opinion of Transpower New Zealand
       Limited, as the System Operator, at the date of publication. Transpower New Zealand Limited does not make any
       representations, warranties or undertakings either express or implied, about the accuracy or the completeness of the
       information provided. The act of making the information available does not constitute any representation, warranty or
       undertaking, either express or implied. This document does not, and is not intended to; create any legal obligation or duty
       on Transpower New Zealand Limited. To the extent permitted by law, no liability (whether in negligence or other tort, by
       contract, under statute or in equity) is accepted by Transpower New Zealand Limited by reason of, or in connection with,
       any statement made in this document or by any actual or purported reliance on it by any party. Transpower New Zealand
       Limited reserves all rights, in its absolute discretion, to alter any of the information provided in this document.
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       Reproduction of this document in whole or in part without the written permission of Transpower New Zealand is prohibited.

       Contact Details

       Address:              Transpower New Zealand Ltd
                             Waikoukou, 22 Boulcott Street
                             PO Box 1021
                             Wellington
                             New Zealand
       Telephone:            +64 4 495 7000
       Fax:                  +64 4 498 2671
       Email:                system.operator@transpower.co.nz

       Website:              https://www.transpower.co.nz/system-operator
Hydro Risk Curve Assumptions - September 2018

VERSION HISTORY

      Version1                 Date                                    Change

    Historical       n/a                        For prior versions please contact the System Operator
    versions

    55.0             4th May 2018               Updated demand forecast data, and updated generation
                                                outages for the next two months.

    56.0             13th June 2018             Updated generation outages for the next two months.

    57.0             20th July 2018             Updated generation outages for the next two months.
                                                Extended Ohaaki de-rating until 31 December 2018.
                                                Updated Junction Road and Te Ahi O Maui                         3
                                                commissioning dates.

    58.0             29th August 2018           Updated generation outages for the next two months.
                                                Excluded Tekapo contingent storage from 1 October to
                                                31 March

    59.0             25th September 2018        Updated generation outages for the next two months.
                                                Updated Te Ahi O Maui commissioning date.

1To qualify as a new version there needs to be a change to the HRC curves. Updates that change this document,
but do not affect the HRCs are denoted as sub-versions.
Hydro Risk Curve Assumptions - September 2018

    TABLE OF CONTENTS
    Version History ........................................................................................................................................ 3
    Table of Contents .................................................................................................................................... 4
    1 Introduction....................................................................................................................................... 5
    2 Hydro Risk Curve Assumptions ....................................................................................................... 5
      2.1     Demand Assumptions ............................................................................................................. 5
      2.2     Supply Assumptions ................................................................................................................ 8
      2.3     Hydro Storage ....................................................................................................................... 10
        2.3.1 Monitoring of storage ......................................................................................................... 10
      2.4     Hydro conversion efficiency................................................................................................... 10
        2.4.1 Contingent hydro storage .................................................................................................. 11
4     2.5     Thermal Fuel and Operational Limitations ............................................................................ 11
      2.6     Planned Outages ................................................................................................................... 12
      2.7     Forced Generation Outages .................................................................................................. 12
      2.8     Generation De-ratings ........................................................................................................... 13
      2.9     Transmission Assumptions.................................................................................................... 13
        2.9.1 Security constraints ........................................................................................................... 13
      2.10 HVDC Assumptions ............................................................................................................... 15
      2.11 Market Behaviour and Generation Dispatch ......................................................................... 15
    3 Appendix 1: The 2018 and 2019 Hydro Risk Curves ..................................................................... 16
      3.1     How to read the Hydro Risk Curves ...................................................................................... 16
      3.2     New Zealand Hydro Risk Curves for 2018 and 2019 ............................................................ 17
      3.3     South Island Hydro Risk Curves for 2018 and 2019 ............................................................. 18
    4 Appendix 2: Past changes to the Hydro Risk Curves .................................................................... 19
    Tables
    Table 1 Annual demand assumptions (total GWh) ................................................................................. 5
    Table 2 Annual demand assumptions (average GWh/week) .................................................................. 6
    Table 3 Monthly demand assumptions.................................................................................................... 6
    Table 4 Generating plant assumptions.................................................................................................... 8
    Table 5 Planned generation outages included in HRC modelling ......................................................... 12
    Table 6 Security constraints included in HRC modelling ...................................................................... 13
    Table 7 Determining the energy risk meter status ................................................................................ 16
    Table 8 Changes to HRCs since January 2018 .................................................................................... 19
Hydro Risk Curve Assumptions - September 2018

1 INTRODUCTION
Transpower in its role as System Operator aims to provide high quality security of supply related
information including the Hydro Risk Curves (HRCs) to all interested parties. The purpose of the HRCs
is to illustrate the New Zealand and South Island hydro storage level over a calendar year and indicate
the risk of a future shortage given a standardised set of assumptions.
This paper presents the assumptions used to derive the HRCs. The assumptions detailed in this paper,
and as a consequence the HRCs themselves, will be updated monthly as new information becomes
available to the System Operator.
The following changes have been incorporated in this HRC update, effective from 25th September 2018:
       •   Updated generation outages for the next two months.
       •   Updated Te Ahi O Maui commissioning date.                                                      5
HRCs from October to December have increased due to the updated generation outages and
commissioning date.
The System Operator invites comments and feedback on the HRCs and their associated assumptions,
particularly supply assumptions including thermal fuel and operational limits, and the treatment of
contingent storage. All feedback should be directed to Market Security Services Manager, Bennet
Tucker at bennet.tucker@transpower.co.nz.

2 HYDRO RISK CURVE ASSUMPTIONS
This section details the assumptions the System Operator has used to derive the HRCs in this update.

2.1 DEMAND ASSUMPTIONS
The demand assumptions are based on Transpower’s 2018 long-term electricity demand forecast which
forecasts demand for electricity at the Grid Exit Point (GXP). The GXP forecast is adjusted to include
demand which has been served by embedded generation, but is exclusive of transmission losses. The
tables below show total annual GWh (inclusive of embedded generation such that the supply side
matches the demand side, see section 2.2 for supply side assumptions), and the annual and monthly
average demand figures as measured in GWh/week across both islands. Note that the model assumes
a 2% reduction in demand to account for price response2.
                                     Table 1 Annual demand assumptions (total GWh)

                  Year                          North Island (GWh)                   South Island (GWh)

            2017 (base year)                           25,904                               14,699

                  2018                                 25,995                               14,856

                  2019                                 26,345                               15,446

                  2020                                 26,617                               15,628

2   The figures shown in Tables 1, 2 and 3 have not been adjusted to account for this price response.
Hydro Risk Curve Assumptions - September 2018

                                  Table 2 Annual demand assumptions (average GWh/week)

                    Year                        North Island (Average               South Island (Average
                                                     GWh/week)                           GWh/week)

             2017 (base year)                             496.79                               281.89

                    2018                                  498.54                               284.91

                    2019                                  505.26                               296.22

                    2020                                  509.07                               298.89

                                            Table 3 Monthly demand assumptions

                   Month                                North Island                         South Island
6                                                   (Average GWh/week)                   (Average GWh/week)

                   Jan-18                                 458.02                               273.68
                   Feb-18                                 474.22                               280.11
                   Mar-18                                 475.10                               276.17
                   Apr-18                                 481.19                               275.96
                   May-18                                 508.21                               284.24
                   Jun-18                                 539.99                               295.61
                    Jul-18                                553.95                               300.88

                   Aug-18                                 546.52                               296.02
                   Sep-18                                 518.81                               283.83
                   Oct-18                                 496.70                               279.34
                   Nov-18                                 485.94                               293.19
                   Dec-18                                 462.86                               287.35
                   Jan-19                                 464.19                               285.96
                   Feb-19                                 480.61                               292.67
                   Mar-19                                 481.50                               288.55
                   Apr-19                                 487.67                               288.34
                   May-19                                 515.06                               296.99
                   Jun-19                                 547.27                               308.87
                    Jul-19                                561.41                               314.37
                   Aug-19                                 553.88                               309.30
                   Sep-19                                 525.80                               296.56
                   Oct-19                                 503.39                               291.87
                   Nov-19                                 492.49                               297.52
                   Dec-19                                 469.10                               291.60
                   Jan-20                                 467.69                               288.53
                   Feb-20                                 484.24                               295.31
                   Mar-20                                 485.14                               291.15
Hydro Risk Curve Assumptions - September 2018

               Apr-20                           491.35   290.94
               May-20                           518.95   299.67
               Jun-20                           551.40   311.65
                Jul-20                          565.65   317.20
               Aug-20                           558.07   312.08
               Sep-20                           529.77   299.23
               Oct-20                           507.19   294.50
               Nov-20                           496.20   300.20
               Dec-20                           472.64   294.23   7
Hydro Risk Curve Assumptions - September 2018

    2.2 SUPPLY ASSUMPTIONS
    The table below shows the generation plant that is included in the HRC modelling.
                                            Table 4 Generating plant assumptions

                      Generator                        Capacity                     Generation profile
                                                        (MW)

    Thermal Plant (North Island)

    Huntly Rankines3                                      480

    Huntly Unit 5                                         385

    Huntly Unit 6                                         45
8   Taranaki Combined Cycle                               377

    Stratford Peakers                                     200

    Whirinaki                                             155

    Mckee Peaker                                          100

    Junction Road4                                        95

    Geothermal Plant (North Island)

    Kawerau Onepu5                                        60          Profiled output

    Kawerau                                               104         Profiled output

    Te Ahi O Maui6                                        24          Profiled output

    Nga Awa Purua                                         135         Profiled output

    Ngatamariki                                          83.2         Profiled output

    Ohaaki                                                40          Ohaaki will be de-rated from 40 MW to 30 MW
                                                                      for the period between 18 December 2017
                                                                      through to 31 December 2018

    Poihipi                                               55          Profiled output

    Mokai                                                 112         Profiled output

    Rotokawa                                             34.5         Profiled output

    Tauhara A                                             23          Profiled output

    Wairakei                                              132         Profiled output

    Te Mihi                                               166         Profiled output

    Ngawha 2                                              26          Profiled output

    Co-generation plant (North Island)

    Kinleith                                              28          Profiled output

    Kiwi Cogen/Whareroa                                   70          Profiled output

    Te Rapa                                               44          Profiled output

    Glenbrook                                             74          Profiled output

    3   Unit capacity of 243 MW.
    4   Expected commissioning date of 1st June 2020
    5   Includes both Cogen (TA2 & TA3), and Geothermal (KA24 and TOPP1) generators
    6   Expected commissioning date of 30th September 2018
Hydro Risk Curve Assumptions - September 2018

                      Generator                 Capacity                 Generation profile
                                                 (MW)

Kapuni                                            25       Profiled output

Hydro plant (North Island)

Tuai                                              59       Based on historical inflow sequences

Kaitawa                                           36       Based on historical inflow sequences

Piripaua                                          44       Based on historical inflow sequences

Aratiatia                                         78       Based on historical inflow sequences

Ohakuri                                           106      Based on historical inflow sequences

Atiamuri                                          74       Based on historical inflow sequences   9
Whakamaru                                         110      Based on historical inflow sequences

Maraetai                                          352      Based on historical inflow sequences

Waipapa                                           54       Based on historical inflow sequences

Arapuni                                           182      Based on historical inflow sequences

Karapiro                                          96       Based on historical inflow sequences

Rangipo                                           120      Based on historical inflow sequences

Tokaanu                                           240      Based on historical inflow sequences

Matahina                                          80       Profiled output

Mangahao                                          42       Profiled output

Patea                                             32       Profiled output

Wheao                                             24       Profiled output

Aniwhenua                                         25       Profiled output

Kaimai                                            38       Profiled output

Wind Plant (North Island)

Te Rere Hau                                       48.5     Profiled output

Tararua I, II & III                               161      Profiled output

Te Uku                                            64       Profiled output

Te Apiti                                          90       Profiled output

Mill Creek                                        60       Profiled output

Westwind                                          142      Profiled output

Hydro Plant (South Island)

Tekapo A                                          30       Based on historical inflow sequences

Tekapo B                                          154      Based on historical inflow sequences

Ohau A                                            264      Based on historical inflow sequences

Ohau B                                            212      Based on historical inflow sequences

Ohau C                                            212      Based on historical inflow sequences

Benmore                                           540      Based on historical inflow sequences

Aviemore                                          220      Based on historical inflow sequences
Hydro Risk Curve Assumptions - September 2018

                        Generator                    Capacity                 Generation profile
                                                      (MW)

     Waitaki                                           105      Based on historical inflow sequences

     Clyde                                             400      Based on historical inflow sequences

     Roxburgh                                          320      Based on historical inflow sequences

     Manapouri                                         800      Based on historical inflow sequences

     Argyle/Branch                                     11       Profiled output

     Highbank                                          26.8     Profiled output

     Dillmans/Kumera                                   10       Profiled output
10   Patearoa/Paerau                                   12       Profiled output

     Cobb                                              32       Based on historical inflow sequences

     Coleridge                                         39       Based on historical inflow sequences

     Waipori                                           83.6     Profiled output

     Wind plant (South Island)

     Mahinerangi                                       36       Profiled output

     White Hill                                        58       Profiled output

     2.3 HYDRO STORAGE
     Potential hydro generation or hydro storage equates to a volume of water stored within one of the
     numerous hydro lakes or catchments around the country, and it is typically expressed in terms of
     potential energy or GWh’s. The amount of aggregated hydro storage in New Zealand is extremely
     important to the energy balance in the New Zealand electricity system as it is the greatest source of
     variability. Consequently, the level of hydro storage is an important companion to the HRCs themselves.
     The most important features of hydro storage are summarised below.

     The System Operator reports on aggregate controlled hydro storage relative to the HRCs using data
     from NZX, available through NZX Hydro7.

     2.4 HYDRO CONVERSION EFFICIENCY
     In order to derive the HRCs it is necessary to make assumptions about the conversion efficiency of
     stored hydro to electrical power at different levels of storage across different hydro-electric schemes.
     The System Operator uses conversion efficiencies to align with those used in NZX Hydro.

     7   https://energy.nzx.com/
Hydro Risk Curve Assumptions - September 2018

The System Operator has implemented a two-fold categorisation of hydro storage: controlled storage
and contingent storage:

    ▪    Controlled hydro storage means any hydro storage that is controllable and available for
         generation of electricity from Lakes Tekapo, Pukaki, Te Anau, Hawea and Manapouri for the
         South Island, and Lakes Taupo, Tekapo, Pukaki, Te Anau, Hawea and Manapouri for New
         Zealand, but excludes contingent hydro storage.
    ▪    Contingent hydro storage means hydro storage that is available for the generation of
         electricity only under emergency conditions or specifically to mitigate a risk of shortage.
The main significance of this categorisation is that the energy contribution from contingent storage is
deliberately ignored when calculating the HRCs8.
Contingent storage known to the System Operator at the present time is as follows:                              11

    ▪    Lake Hawea: estimated 67 GWh of contingent storage
    ▪    Lake Pukaki: estimated 546 GWh of contingent storage
    ▪    Lake Tekapo: estimated 220 GWh of contingent storage between 1 October and 31 March; at
         all other times this storage is treated as controlled storage
Tekapo contingent storage is currently included in NZX Hydro’s controlled storage value at all times
during the year, to correct for this, the System Operator will manually exclude Tekapo contingent storage
from the reported controlled storage between 1 October to 31 March each year.

2.5 THERMAL FUEL AND OPERATIONAL LIMITATIONS
To derive the HRCs it is necessary to assess the availability of thermal fuel for electricity generation.
The HRCs have been based on the assumption that thermal fuel will in the most part not constrain the
production of electricity, unless there are physical limitations that cannot easily be offset with commercial
arrangements.
Specifically, thermal generating plant is assumed to be unconstrained by primary fuel or operational
limitations with the following exceptions:

    ▪    Whirinaki is constrained to a limit of 30 GWh of generation p.a.
These assumptions are designed to reflect the limited fuel and available operating hours of the plant.
The System Operator is comfortable that thermal fuel supplies will not be limited in a way that impacts
the HRC model (other than those described above), and therefore the shortage risk facing New Zealand.

8 The reasons for this are documented in a summary document published by the System Operator following an
extensive consultation process: https://www.transpower.co.nz/system-operator/security-supply/hydro-storage-
information
Hydro Risk Curve Assumptions - September 2018

      2.6 PLANNED OUTAGES
      In determining the HRCs, the System Operator has assumed there will be no planned outages, except
      those considered critical for the ongoing safe operation of the plant, those with a long associated
      contingent return to service period or those that have been fully committed and cannot be deferred. The
      specific planned outages that have been assumed are as follows.
                                  Table 5 Planned generation outages included in HRC modelling

                 Plant                   De-rating (MW)                      Start                 End

     Stratford Peakers                          100                       30/05/2018             22/09/2018

     Stratford Peakers                          200                       22/09/2018             23/09/2018
12
     Stratford Peakers                          100                       23/09/2018             14/10/2018

     Stratford Peakers                          100                       15/10/2018             30/11/2018

     Kumara                                      4                        29/07/2018             2/11/2018

     Wairakei                                    2                         4/09/2018             28/09/2018

     Wairakei                                    3                         8/10/2018             19/10/2018

     Huntly Unit 6                              45                        30/09/2018             4/10/2018

     Patea                                      13                         1/10/2018             12/10/2018

     Patea                                      13                        15/10/2018             19/10/2018

     Patea                                      13                        29/10/2018             2/11/2018

     Mokai                                      58                         7/10/2018             7/10/2018

     Mokai                                      153                        7/10/2018             18/10/2018

     Mokai                                      24                        18/10/2018             10/11/2018

     Mokai                                      44                        11/11/2018             11/11/2018

     Mokai                                      34                        11/11/2018             11/11/2018

     Mokai                                      24                        11/11/2018             13/11/2018

     Tekapo A                                   30                        15/10/2018             19/10/2018

     Coleridge                                  13                        15/10/2018             17/10/2018

     Huntly Unit 5                              385                       26/10/2018             11/12/2018

     Ngatamariki                                26                        26/10/2018             30/11/2018

      2.7 FORCED GENERATION OUTAGES
      The System Operator has assumed a 3% factor on all thermal and geothermal capacity to reflect forced
      outages when deriving the HRCs.
Hydro Risk Curve Assumptions - September 2018

2.8 GENERATION DE-RATINGS
Resource Consent limitations, temporary engineering issues with plant, and operational factors can all
cause plant capacity to be de-rated. The following plant de-rating assumptions are used to derive the
HRCs:

      ▪   Short notice maintenance outages: One Huntly unit is assumed to be out of service for
          maintenance three weekends in five
      ▪   Ancillary services requirements: Total thermal generation has been de-rated by 21MW at all
          times to reflect spinning reserve (16MW) and frequency keeping (5MW) requirements.

2.9 TRANSMISSION ASSUMPTIONS
                                                                                                                   13
The Energy Link model includes a comprehensive nodal representation of the electricity system. This
model attempts to approximate the physical characteristics of the grid to ensure transmission losses9,
constraints and limits within the grid are correctly accounted for when deriving the HRCs.
The current grid assumptions, including line information, constraint equations and future upgrades,
includes a total of 316 lines and 224 nodes. Grid assumptions are available upon request.

The model includes security constraints 10 that have the potential to constrain generation in a dry year.
The following table outlines the constraint equations and the transfer limits for each constraint. The pre-
contingent steady state power flow on the two circuits listed must not exceed the transfer limit given.
For example, power flow from Hamilton to Karapiro on the circuits HAM_KPO2.2 multiplied by a factor
of -1.06, plus the power flow from Hamilton to Karapiro on the circuit HAM_KPO1.2 multiplied by a factor
of -0.89, must not exceed 60MW (summer rating).
                                Table 6 Security constraints included in HRC modelling

                             Constraint                                                  Transfer Limit

                                                                             Summer        Shoulder       Winter

    0.86*BOB_OTA2.2 + 1.09*BOB_OTA1.2                                                         121

    -1.06*HAM_KPO2.2 + -0.89*HAM_KPO1.2                                          60           67           74

    -1.05*HAM_KPO2.1 + -0.89*HAM_KPO1.1                                          63           67           73

    -1.24*OHK_WRK.1 + -1.01*ATI_WKM.1                                           427           444          462

    -1.03*KIN_TRK1.2 + -1.02*KIN_TRK2.2                                          51           57           64

    -1.36*BRK_SFD1.1 + -0.42*BRK_SFD2.1                                                       327

    RDF_T3 + RDF_T4                                                                           129

    -1.04*FHL_RDF2.1 + -0.92*FHL_RDF1.1                                          52           59           66

    -1.28*BPE_TKU1.1 + -0.5*BPE_TKU2.1                                          410           424          444

    1.4*RPO_TNG1.1 + -0.24*BPE_TKU2.1                                           342           378          415

    1*BPE_WDV1.1 + -0.04*HAY_LTN1.1                                              55           55           64

9 Transmission losses are modelled and accounted for, distribution losses are not (because the
demand used is at the GXP level).
10 The security constraints are sourced from the system operator’s System Security Forecast:

https://www.transpower.co.nz/system-operator/key-documents/system-security-forecast.
Hydro Risk Curve Assumptions - September 2018

                                  Constraint                                 Transfer Limit

                                                                   Summer      Shoulder       Winter

      1*BPE_HAY1.1 + 1*BPE_HAY2.1 + -1*HAY_LTN1.1 +
                                                                                 1046
      1*BPE_WIL1.2 + -1*MGM_WDV1.1

      1*LIV_NSY.1 + -0.42*CYD_TWZ1.2                                              304

      -1.23*AVI_BEN2.1 + -0.89 * AVI_BEN1.1                           255         278          302

      -1.12*GOR_ROX.1 + -0.06*INV_ROX1.1                              77          n/a          n/a

      -1.05*EDN_INV.1 + -0.65*GOR_ROX.1                               77          n/a          n/a

14
     Note, the Energy Link model aggregates parallel transmission branches into a single branch – as a
     result some of the above constraints have been modelled as branch limits rather than equation
     constraints.
Hydro Risk Curve Assumptions - September 2018

2.10 HVDC ASSUMPTIONS

    ▪    Maximum north (BEN_HAY) transfer 1000 MW
    ▪    Maximum south (HAY_BEN) transfer 550 MW

2.11 MARKET BEHAVIOUR AND GENERATION DISPATCH
In order to derive the HRCs, it is necessary to make assumptions about the merit order of electricity
generating plant. For the purpose of deriving the HRCs, it has been assumed that electricity generating
plant will be offered in such a way as to minimise the use of hydro storage. In practice, this means the
model for determining HRC will typically dispatch thermal generation before dispatching hydro
generation.
It is also necessary to make assumptions about the merit order of hydro generation between the North         15
and South Island. For example, deciding what preference, if any, we place on storage in Lake Taupo
versus storage in the South Island. For the purpose of deriving the HRCs, the water value of each
storage lake has been calculated and storage is dispatched according to this value. This optimisation
of water use is carried out at the national level (i.e. the use of storage is optimised across the country
for both the NZ and SI HRCs).
Hydro Risk Curve Assumptions - September 2018

     3 APPENDIX 1: THE 2018 AND 2019 HYDRO RISK CURVES
     The charts in this section show the 2018 and 2019 New Zealand & South Island HRCs measured in
     GWh of New Zealand & South Island aggregate controlled storage.

     3.1 HOW TO READ THE HYDRO RISK CURVES
     The hydro risk curves are quantified by potential energy (in GWh) stored in controlled hydro lakes, and
     are calculated for between 6-18 months into the future. If the amount of controlled storage intersects
     the 10% risk curve, one in ten historical inflow sequences from the last 80 years would lead to controlled
     storage running out. The risk status depends on where controlled storage sits on the graph in relation
     to the risk curves.
16                                      Table 7 Determining the energy risk meter status

                          Risk Status                                      Level of controlled hydro storage

     Normal                                                      Above the 1% risk curve

     Watch                                                       On or below the 1% risk curve

     Alert                                                       Below the 4% risk curve

     Emergency                                                   Below the 10% risk curve

     Note that because the HRCs are not calculated retrospectively, outdated HRCs are still seen in Figures
     3.1 and 3.2. See Appendix 2 for more detail on past changes to the HRCs.
NZ Actual Controlled Storage and Risk Curve
                                                                                                                                                                                                                                          Updated: 25 September 2018
              4000
                                Nominal NZ full

              3500
                                                                                                                                                                                                                                          (Lakes Taupo, Tekapo, Pukaki,
                                                                                                                                                                                                                                          Hawea, Te Anau & Manapouri)

              3000

              2500
                                                                                                                                                                                                                                                                                                                                                         Hydro Risk Curve Assumptions - September 2018

              2000

Storage GWh
              1500

              1000

               500
                                                                                                                                                                                                                                                                                                   3.2 NEW ZEALAND HYDRO RISK CURVES FOR 2018 AND 2019

                 0

                                                                                          1-Jul-18
                                                                                                                                                                                                                               1-Jul-19

                     1-Jan-18
                                                                                                                                                            1-Jan-19

                                                                                                                           1-Oct-18
                                                                                                                                                                                                                                                                  1-Oct-19

                                                                               1-Jun-18
                                                                                                                                                                                                                    1-Jun-19

                                                         1-Apr-18
                                                                                                                                                                                              1-Apr-19

                                  1-Feb-18
                                                                                                                                                                        1-Feb-19

                                             1-Mar-18
                                                                                                                                                                                   1-Mar-19

                                                                                                                                                 1-Dec-18
                                                                                                                                                                                                                                                                                        1-Dec-19

                                                                                                                1-Sep-18
                                                                                                                                                                                                                                                       1-Sep-19

                                                                                                     1-Aug-18
                                                                                                                                                                                                                                            1-Aug-19

                                                                                                                                      1-Nov-18
                                                                                                                                                                                                                                                                             1-Nov-19

                                                                    1-May-18
                                                                                                                                                                                                         1-May-19

                                                                                                                                                 Month
                      Nominal NZ Full                                               1% Risk                                4% Risk                                     Emergency Zone - 10% Risk                                                          HRC updates
                     refers to an update to the HRCs: see Appendix 2 for more information
                                                                                                                                                                                                                                      17
18
                                                           SI Actual Controlled Storage and Risk Curve
                                                                                                                                                                                                                                             Updated: 25 September 2018
              4000

                                                                                                                                                                                                                                                         (Tekapo, Pukaki, Hawea,
                                                                                                                                                                                                                                                         Te Anau & Manapouri)
              3500
                                 Nominal SI full

              3000

              2500
                                                                                                                                                                                                                                                                                                                                                               Hydro Risk Curve Assumptions - September 2018

              2000

              1500

Storage GWh
              1000

               500
                                                                                                                                                                                                                                                                                                        3.3 SOUTH ISLAND HYDRO RISK CURVES FOR 2018 AND 2019

                 0

                                                                                             1-Jul-18
                                                                                                                                                                                                                                  1-Jul-19

                      1-Jan-18
                                                                                                                                                                1-Jan-19

                                                                                                                              1-Oct-18
                                                                                                                                                                                                                                                                       1-Oct-19

                                                                                  1-Jun-18
                                                                                                                                                                                                                       1-Jun-19

                                                            1-Apr-18
                                                                                                                                                                                                 1-Apr-19

                                    1-Feb-18
                                                                                                                                                                           1-Feb-19

                                                1-Mar-18
                                                                                                                                                                                      1-Mar-19

                                                                                                                                                    1-Dec-18
                                                                                                                                                                                                                                                                                             1-Dec-19

                                                                                                                   1-Sep-18
                                                                                                                                                                                                                                                            1-Sep-19

                                                                                                        1-Aug-18
                                                                                                                                                                                                                                              1-Aug-19

                                                                                                                                         1-Nov-18
                                                                                                                                                                                                                                                                                  1-Nov-19

                                                                       1-May-18
                                                                                                                                                                                                            1-May-19

                                                                                                                                                    Month
                                               Nominal SI Full                                                 1% Risk                                         4% Risk                                      Emergency Zone - 10% Risk
                     refers to an update to the HRCs: see Appendix 2 for more information
Hydro Risk Curve Assumptions - September 2018

4 APPENDIX 2: PAST CHANGES TO THE HYDRO RISK CURVES
This table below describes the changes to the HRCs since January 2018. These changes are caused
by updates to the assumptions used to derive the HRCs.
There has been 9 updates since 1 January 2018. Descriptions of earlier changes are available on
request.
                                    Table 8 Changes to HRCs since January 2018

    Effective from                       Changes to assumptions                     Impact of changes

 31ST January 2018          ▪   Updated generation and transmission outages for   An increase in HRCs
                                                                                  for February and March
                                the next two months.
                                                                                  2018.
                                                                                                             19
 28th February 2018         ▪   Updated demand forecast data, generator           An increase in HRCs
                                capacity assumptions, generation profiles,
                                frequency keeping and instantaneous reserves
                                assumptions, and generation outages and de-
                                ratings.

 22nd March 2018            ▪   Updated generation outages for the next two       An increase in HRCs
                                                                                  for April and May 2018.
                                months.

 27th April 2018            ▪   Updated generation outages for the next two       An increase in HRCs
                                                                                  for May 2018 and a
                                months.
                                                                                  slight decrease in
                                                                                  HRCs for June 2018.

 4th May 2018               ▪   Updated demand forecast data to include           A slight increase in the
                                                                                  October, November
                                increased Tiwai load, and updated generation
                                                                                  and December 2018
                                outages for the next two months.                  HRCs, and a significant
                                                                                  increase in the 2019
                                                                                  HRCs.

 13th June 2018             ▪   Updated generation outages for the next two       An increase in HRCs
                                                                                  for June, July and
                                months.                                           August 2018.

 20th July 2018             ▪   Updated generation outages for the next two       A slight increase in
                                                                                  2018 HRCS, and a
                                months. Extended Ohaaki de-rating until 31        significant increase in
                                December 2018. Updated Junction Road              2019 HRCs as well as
                                commissioning date to 1 June 2020. Updated Te     October 2018.
                                Ahi O Maui commissioning date to 31st August
                                2018

 29th August 2018           ▪   Updated generation outages for the next two       A decrease to HRCs
                                                                                  for January to March
                                months. Excluded Tekapo contingent storage        and October, and an
                                from 1 October to 31 March                        increase to HRCs for
                                                                                  other months.

 25th September 2018        ▪   Updated generation outages for the next two       An increase to HRCs
                                                                                  for October to
                                months. Updated Te Ahi O Maui commissioning
                                                                                  December 2018.
                                date to 30th September 2018
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