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.

Image of two people looking at solar panels

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.

Aurora Flexibility Diagram Aurora Flexibility Diagram

Who does what? Roles and functions

Flexibility Resource Owners Flexibility Service Providers Flexibility Buyers
  • Own small energy resources like solar-battery systems, hot water systems, batteries, EV chargers, and heating/cooling systems.
  • Control large-scale DER such as batteries, have flexible demand such as dairy customers, irrigation load, cold storage or customers that can shift or reduce loads.
  • Can be residential, commercial, or industrial customers.
  • Distributed generation companies can also be Flexibility Service Providers.
  • Manage a group of these energy resources to meet network demand.
  • Allocate resources to their best use (called "value stacking").
  • Can be new market entrants or existing retailers.
  • Companies like Aurora Energy that use these solutions to manage demand and network issues.
  • Can also be the Transmission System Operator, Grid owner, or other EDBs.
  • Retailers may offer discounts to customers with flexibility resources.

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. 


Frequently asked questions

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]