Aurora Energy is leading the way for our sector by seeking alternative ways to manage our network and to help drive Aotearoa's efforts towards a decarbonised energy future.
Why is Aurora Energy seeking non-network solutions?
We recognise the shift in how electricity is generated and used. Non-network solutions allow for smarter, more flexible alternatives to traditional infrastructure upgrades and will help us make sure we’re meeting the future needs of our communities. As electricity use evolves with increased uptake of Distributed Energy Resources (DER) like electric vehicles, solar generation, and battery storage—our network must adapt.
Flexibility solutions are considered a non-network solution that relies on DER and other controllable loads to shift, reduce or turn off non-essential energy use and making better use of the existing network. Flexibility solutions not only support future growth and avoid large increases in lines charges but also contribute to Aotearoa New Zealand’s net-zero carbon goals.
We successfully trialled this approach in Upper Clutha between 2021 to 2024, using hot water loads and third-party solar-battery systems to reduce peak demand. This allowed us to defer major upgrades by two years, easing capacity constraints and ultimately saving costs for customers.
We’ve led the way in New Zealand by going to an open market for non-network solutions—setting a precedent in the electricity distribution industry. As we continue to scale this approach, we’re seeking Flexibility Service Providers to help us manage constraints across all levels of our network.
Flexibility solutions are part of our wider network investment strategy and could become an important tool to address network constraints in both the short and long term.
Flexibility market explained
The contribution of non-network solutions to help manage electricity demand needs will require the development of new market players and industry roles. Here's a summary of how the future energy system could work with the use of non-network resources.
Who does what? Roles and functions
| Flexibility Resource Owners | Flexibility Service Providers | Flexibility Buyers |
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Open calls
Where there are parts of our network that would benefit from flexibility solutions, we will run an open call process to seek expressions of interest, registrations, and proposals. We will open and close each process as the network needs are met.
Read our Flexibility Solutions Guide for everything you need to know about the process.
Current open calls
Queenstown
- Queenstown Flexibility Solutions Expression of Interest Guide 2025
- Expression of Interest: Aurora Energy Queenstown Flexibility Solution form
Upper Clutha
- Upper Clutha Flexibility Solutions Expression of Interest Guide 2025
- Expression of Interest: Aurora Energy Upper Clutha Fexibility Solution form
Watch this space
Omakau
Closed open calls
Upper Clutha
Map showing Queenstown and Upper Clutha subnetworks and trial boundaries
Frequently asked questions
We believe the future for our energy system will see many players including customers, working together to contribute to, and manage, the electricity needs of our communities. Sharing available resources means we could defer or even avoid building more costly infrastructure, and instead, create new partnerships to help manage the electrification growth of our communities. We see our role as fundamental to helping drive Aotearoa’s decarbonisation goals, and to enabling the use of new technologies to support customer choices and innovation in the energy sector.
Flexibility Solutions are considered non-network solutions, as opposed to network solutions like poles and wires. They are distributed energy resources (DER), large distributed generation (DG), and flexible demand that can provide capacity and voltage support to EDBs like Aurora Energy. They can also provide support to Transpower (the national grid operator), such as responding to demand and providing instantaneous reserves for the national grid.
DER refers to Distributed Energy Resources. These are small-scale, distribution-embedded assets that either reduce load or inject more power like EV chargers, solar panels, batteries, or automated load management devices.
Controllable DER is where the output or consumption can be turned up or down based on demand – for example, batteries, hot water and smart EV chargers. Renewable generation like wind or solar is not normally considered controllable without a battery, but in some situations voltage control or generation curtailment can be considered controllable DER.
This can refer to a range of things, including existing household systems (like hot water) that can be controlled to reduce demand, or DER such as solar-battery systems, battery systems or electric vehicle chargers. Flexibility solutions can also be provided by commercial, dairy and industrial customers that can reduce or shift demand such as operational processes, irrigation, and cold storage among others. Flexibility Solutions could also be provided by large-scale distributed generation. Importantly, network support could be provided through the use of resources not listed here but proposed by those registering their interest.
Flexibility Solutions will usually be used during peak electricity demand, a network event (such as an unplanned outage) in an area and/or during low demand. It is often a more cost-effective alternative to building a network solution as it can be flexible to uncertain increases in demand, can defer investment in network infrastructure, or can avoid it altogether. It also increases the utilisation of assets.
During our tendering process for the Upper Clutha non-network solution, we found that going to market for alternatives can bring forward viable ideas not previously considered. It demonstrated that there is a role for Flexibility Service Providers to act as intermediaries between owners of Distributed Energy Resources (Flexibility Resources) and the distribution network owner (Flexibility Buyers, like Aurora Energy). However, given it is a new market, we didn’t want to limit the time for any interested respondents to propose ideas and as a result, create barriers to entry. An open call process allows all those that are interested the time to review requirements, and decide how they want to proceed. It also allows multiple players the chance to contribute to a total solution, with the open call only closing when Aurora Energy has the total capacity required in an area.
Yes, we see the use of flexibility solutions as a critical part of our future network strategy. Therefore, where there are parts of our network that would benefit from the use of non-network alternatives, we will run an open call process to seek registrations, and proposals. We will open and close each process as capacity needs are met
Their flexible nature has led to it also being referred to (internationally and locally) as Flexibility Services or non-network support.
In short, yes. Provided the total solution meets Aurora Energy’s requirements in terms of capacity support, communications interface, and data capture. It is important all potential parties can get involved and help grow this new market offering.
Flexibility Service Providers can participate in the wholesale electricity market or Transpower’s demand response if Aurora Energy’s requirements can still be met as agreed. This maximises value of flexible solutions to both customers and Flexibility Traders. This also increases the attractiveness of entering the market with demand flexibility.
A Flexibility Management System (FMS) or Distributed Energy Resource Management Solution (DERMS), refers to a system that allows the flexibility buyers (companies like Aurora Energy) to forecast and respond, procure, manage, contract for, issue instructions to, and pay Flexibility Traders.
A market platform is how Flexibility Buyers and Flexibility Traders interact. A Flexibility Buyer registers the need for flexibility solutions, for example, when, where, and how much capacity. Flexibility Traders can register and offer their flexibility solutions.
Aurora Energy’s standard distribution pricing includes Time-of-Use (ToU) tariffs that enable retailers to offer night rates and peak demand prices to incentivise efficient DER management. We intend to complement standard distribution pricing with additional payments to Flexibility Traders who can discharge batteries, run distributed generators, or shift peak demand in response to Aurora Energy’s requests for network support during critical peaks on the system.
Still have questions?
If you have a question not answered here, please don't hesitate to get in touch by emailing us at [email protected]