Energy efficiency and market forces in the New Zealand electricity market

This paper presents an understanding of how the energy efficiency of power systems is affected by market forces. Special attention is paid to the proper use of renewable energy. A brief description of the energy market in New Zealand is followed by a discussion of some factors which militate against the maintenance of high energy efficiency. The paper concludes with a study of a particular example where the efficiency of two hydro units is investigated with a view to achieving best operating efficiency.