According to AER, since Q2 the year, three major generators have been offline for prolonged periods due to flooding, weather impacts on fuel supply and asset failure. This has resulted in increased wholesale price volatility affecting energy users across the market.1
For business energy users in the NEM, a possible future supply shortfall has the potential to drive higher wholesale prices and additional charges on energy bills, and increase the risk of power outages.
To help mitigate these charges, earn additional revenue and be forewarned of disruptive power outages, eligible businesses can participate in an Emergency Demand Response program.
Demand Response (DR) programs involve large energy users reducing their energy demand when requested in order to help maintain grid reliability. Businesses receive performance-based payments for their participation. DR events are activated when there is significant pressure on the electricity system due to very high demand or supply constraints.
Emergency Demand Response is provided through the Australian Energy Market Operator’s (AEMO’s) Reliability and Energy Reserve Trader (RERT) function. These emergency events typically occur during Australian summers, when extreme weather events can have a severe effect on supply and demand.. Emergency Demand Response is used to combat the threat of blackouts during these peak demand periods.
To avoid power outages in the grid, RERT participants receive a request (usually about 2 hours before an event) to lower or shift their energy use. This request comes via RERT providers on behalf of AEMO.
To participate, the business may do one or more of the following to reduce demand on the network:
Forecasts are often received up to 5 days before an emergency event, giving participants advance notice. Businesses can then make a decision and inform their RERT provider whether or not they wish to participate.
There are four main ways participants benefit from Emergency Demand Response:
There’s a few things to consider when weighing up your participation in Emergency Demand Response.
An energy expert is the right place to start if you’re unsure whether Emergency Demand Response is right for your business, or you want to discover how your business can better respond to DR opportunities.
In Australia, there are three main types of Demand Response, in addition to Emergency Demand Response. These are:
Suitability and benefits of each program depends on a business’s energy load and patterns, equipment and system automation, and response capabilities.
Get in touch with Shell Energy today on 13 23 76 to discuss Demand Response, and how we can help you maximise the value of your participation.
Our Emergency Demand Response offering is available to Shell Energy and non-Shell Energy retail customers.
8 February 2021
6 January 2021