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New Zealand’s Electricity Authority Te Mana Hiko is seeking feedback on how the electricity market could support long-duration firming: the ability to generate power or reduce demand over weeks or months. In a 22 October 2026 article, the Authority said renewable investment is expanding, while variable wind and solar output, limited hydro storage and declining domestic gas availability raise questions about supply during prolonged difficult conditions.
The Authority distinguishes this challenge from short-duration balancing. Grid-scale batteries can help balance the system over minutes or hours; long-duration firming concerns extended shortages such as dry years, sustained low wind, or combinations of challenging weather. The regulator said independent analysis commissioned from Sapere and its own supply-and-demand assessment found the risk of long-duration energy shortage is declining as renewable generation is built, but some risk remains, particularly if hydro shortages are severe and demand grows faster than supply.
The Authority’s preliminary view is that market changes could reduce barriers to investment in long-duration firming. It has released an issues-and-options paper and is asking whether the barriers it identifies are real, whether the issues have been framed correctly and what response would be appropriate. This is a consultation, not a final policy decision, procurement round or commitment to build a particular technology.
Five possible measures are put forward for discussion. One is regular reporting on long-duration firming needs using an established method, to help participants understand future risks. Another is greater transparency around firming contracts, while protecting commercially sensitive information. The Authority also raises practical guidance or standard building blocks to help participants negotiate contracts, and work with industry on more standardised products that could improve liquidity and price discovery.
The fifth option is whether a small mandated sell-side auction for firming products could reveal prices and improve participation if liquidity remains limited. The Authority presents it as a question for feedback, not an adopted mechanism. It says none of the options would fundamentally change New Zealand’s energy-only market design, and the consultation is not intended to select winning technologies.
The regulator identifies several market-design issues behind the debate. Firming assets may be used infrequently, making their insurance value hard to see in average prices. Revenues can depend on scarcity events that may not occur for years, complicating investment decisions. The market has relatively few buyers and sellers, with bespoke bilateral arrangements that can make prices difficult to compare; smaller participants may also lack capability to negotiate complex contracts.
The next step is consultation through the Authority’s issues-and-options paper. The article does not state a closing date or report a completed decision. Until a policy is selected and implemented, the five ideas remain proposals for discussion. The Authority’s assessment also does not guarantee future reliability or quantify a particular project’s need; it frames a market question for further evidence and industry input.