OR in energy planning for a small country

The energy sector has been a fruitful field for OR, particularly since the first oil crisis. Traditional public-sector structures dominated New Zealand’s energy sector until recent corporatisation and privatisation. A review of the Operational Research OR contribution to the public-sector planning process, and the successes and failures of policy modelling in particular, suggests some lessons for public-sector Operational Research OR practice, particularly in small countries. Early experience with the new commercial environment suggests a basically positive impact on Operational Research OR practice, due mainly to improvements in incentive structures.