Course Objective:

To provide a working knowledge of nodal dispatch and pricing as it applies to the New Zealand electricity spot market, and the ability to recognise the cause of common nodal pricing effects. Participants will learn how energy and instantaneous reserves are managed to secure the supply of electricity, and how the "spring washer effect" can create price spikes and dips.

Recommended Course Prerequisites:

• Introduction to the Electricity Market (EL0). 
• Alternatively, some familiarity with the electricity spot market including an overview knowledge of the SPD and RMT models, and with the processes and timing of publication of final, and other prices.

Pre-Course Preparation:  

Prior to the course, participants should watch this short video covering introductory and overview(link is external) material for the course.  After the course, participants will be given access to two videos, one providing more details on the "spring washer effect" and one providing a brief description of how "SFT constraints" are formed.

Market Processes and Models for Dispatch and Pricing
- Dispatch and pricing processes
- Dispatch and pricing models – SPD and RMT
- Dispatch cost function
- Constraints in dispatch and pricing models
- Shadow prices
- Nodal energy prices and reserve prices defined
- Losses and constraints excess

One Node ‘Markets’
- Dispatch and pricing of energy
- Reserves risk offsets
- Dispatch and pricing of reserves
- Dispatch and pricing effects for energy-reserve constrained dispatch
- Dispatch and pricing dominated by reserves

Adding Lines and Losses
- Pricing effects of losses in AC and DC lines
- Linear versus quadratic losses
- Contribution of losses to the ‘losses and constraints excess’
- Loss modelling in SPD

The National Market for Reserves
- Sharing of reserves in the forward and reverse directions
- HVDC operating modes and round power
- Examples and case studies for various combinations of offers and modes

Congested Networks
- Line limits
- Pricing effects of simple line constraints
- Contribution of constrained lines to the losses and constraints excess
- “Spring washer effect” due to line constraints in loops in the Grid

Course Notes:

• Only simple arithmetic is used in this course. 
• Simple examples using a few nodes at most are used to assist learning. 
• Course material may also vary from the above on the day.
• Prices are GST exclusive - Download 2025 Course PDF | Download 2026 Course PDF

Please note, if you are located outside of New Zealand and wish to book a course, please send us an email.