What is demand response?
Be financially rewarded for reducing your energy use and make a vital contribution to a more sustainable future
As Australia makes the transition to a cleaner energy future, there will be times when the increased demand for electricity can present a risk of shortages or blackouts, especially in times of extreme weather or when there’s a lack of available energy supply.
Having flexible capacity in the grid will increasingly become essential for maintaining the balance between supply and demand. That’s why EnergyAustralia’s demand response programs have been designed as a way for our Commercial & Industrial customers to help make a vital contribution to relieving pressure on the grid, while also being rewarded when they reduce their energy use during peak events.
How does demand response work?
During periods of electricity system stress, EnergyAustralia may call upon qualifying customers to activate their demand response plan, to help relieve pressure in the electricity grid. In turn, we provide financial compensation to boost your bottom line.
Before making the decision to take part in the program you should establish whether your business has capacity to either:
● temporarily turn off or significantly reduce electricity use, or
● offset consumption from the grid by switching to standby generators or batteries.
If your business can achieve either of these and you would like to learn more, reach out directly to your account manager or register your interest via the form at the top of this page. A demand response manager will contact you to determine which program is best suited to your business.
Be part of the solution and be rewarded
In the last few years, EnergyAustralia has paid out more than $4.6m to over 1,200 Commercial & Industrial customers for demand response participation
A number of larger business customers have earned over $250,000 for participating in a single demand response event.
Reliability and Emergency Reserve Trader (RERT), Market Demand Response (MDR) and ResponsePro guarantee a minimum payment per kWh of energy curtailed.
Signing up to a demand response program does not oblige your business to participate in any event. It simply means you may be contacted when demand response is needed.
There is a demand response program to suit the individual needs of many types of businesses
Which program works for you?
We understand that businesses vary in their ability to scale up and down their energy use, and the level of stand-by generation or storage they have available. That’s why we have tailored different programs to suit many different capabilities.
EnergyAustralia offers four demand response programs. Depending on your type of business, you may be eligible to participate in multiple programs to maximise the potential benefits.
How EnergyAustralia can help with a demand response program that best suits your business
Technical advice and expertise
Our expert Commercial & Industrial team are here to help you maximise your opportunities, with everything from checking your eligibility for demand response to implementing automation.
To find out more, register your interest here
Frequently asked questions
Demand response enables you to:
- earn credits whilst supporting the clean energy transformation
- earn credits whilst satisfying testing of on-site generators
- reduce RERT pass-through charges from AEMO
- reduce Peak Demand Reduction Scheme (PDRS) pass-through charges in NSW
Each EnergyAustralia demand response program has unique eligibility criteria, and we can provide advice as to which program best suits your business.
- either greater than 0.5MW of reliable, curtailable load or any reliable on-site gen-sets or batteries
- ability to reduce grid consumption by a known amount with approximately two hours’ notice and keep that load off for approximately 3 to 8 hours
- you do not have to be an EnergyAustralia customer to enrol in our RERT program
- no life support requirements at the site
- must be an EnergyAustralia customer with a fixed price or progressive purchasing electricity contract
- either greater than 0.5MW of reliable, curtailable load or any reliable on-site gen-sets/batteries
- ability to reduce grid consumption by a known amount with approximately one hours’ notice and keep that load off for approximately 2 to 4 hours
- no Life Support requirements at the site
- must be a customer of EnergyAustralia with a fixed price or progressive purchasing electricity contract
- businesses not suitable for RERT or MDR ie. typically less than 500kW load with no on-site generation or battery assets
- able to reduce at least 5kWh of electricity consumption for at least 2 hours if participating in a demand response event
- no Life Support requirements at the site
- must be an EnergyAustralia customer with an electricity contract
- must have a predictable load of greater than 500kW available for automatic shutdown*
- must agree to have hardware installed on-site for grid frequency detection which can then send a signal to the control system to automatically shut the load down if the frequency drops+
*this does not require power to be cut off to the whole site. It will only shut down the agreed loads that have been programmed to shut down via the control system in the event of a frequency drop
+the hardware for frequency detection is provided free of charge
Yes, you can participate across multiple sites. You will be rewarded for the cumulative usage reduction across the participating sites.
Your safety, and the safety of your staff, is a paramount consideration for EnergyAustralia. You should not participate in an event where any resulting energy reduction will result in discomfort or injury to anyone. If your organisation has life support requirements on-site, you are unable to participate in demand response.
There isn’t a planned schedule of events. Events can be triggered by unplanned occurrences like generator outages or extreme weather. It’s your ability to respond to these unplanned events that is so valued.
The main ways of reducing your energy usage during an event are to turn down your operations during the event period. This can include:
● reduce on-site energy usage e.g. turn off pumps, heating, air-con, refrigeration
● run on-site generation e.g. run backup generator to offset electricity use at site
● dispatch on site energy storage e.g. discharge batteries to reduce the amount you draw from the grid
Payments vary depending on your program type and usage. As a guide, you will be paid as follows:
Reliability and Emergency Reserve Trader (RERT)
Benefits are paid at a fixed rate per MWh of load reduction. RERT payment rates are typically the highest of any of the programs.
Market Demand Response (MDR)
Benefits of this program are based on the market spot price at the time of the event. EnergyAustralia can also offer a guaranteed minimum Floor Price for MDR, with upside benefits paid for higher spot price outcomes.
Frequency Control Ancillary Services (FCAS)
Benefits are paid based on load availability during each trading interval multiplied by a share of the FCAS Contingency Raise Prices during that interval.
You will be credited $2/kWh for your usage reduction calculated by comparing your actual usage during the event to a baseline of what your usage would have been if the event had not occurred.