Based on global El Niño weather conditions, experts are warning Australia should be prepared for a long and hot summer1. With an increase in heat and additional demand on the electricity grid, so too comes the opportunity to potentially unlock additional revenue by participating in Demand Response programs.
Demand Response programs involve large energy users – who have access to flexible loads and on-site generation assets or storage – reducing their energy demand when requested during periods of high demand and/or high prices. Based on which program you choose to participate in, your business can access opportunities for additional revenue and help to maintain national electricity grid stability.
There are a number of different types of DR programs available and each program is suitable for a different type of business capability and offers different benefits depending on your energy load and patterns, equipment and system automation and response capabilities.
Participants in many DR programs are compensated for their support and the volume of electricity they reduce during the agreed period, meaning that your business may be able to unlock additional streams of revenue just by participating. Participating in a DR program may also help to maintain national electricity grid stability.
At Shell Energy, we help customers to participate in four DR programs, which fall under two main categories: Frequent Response and Infrequent Response.
Frequent Response programs are suitable for large energy users with a response capability that will allow them to respond to an energy grid alert within 30 minutes on a regular basis (1-3 times per month). Programs that fall under this category include the Ancillary Services Demand Response (FCAS) and Wholesale Demand Response programs.
The FCAS program is a program offered by the Australian Energy Market Operator (AEMO) to manage power system security, when system frequency deviates from its normal operating band of 50 +/-0.15 Hz, . When this happens, businesses are called on to provide a fast injection or reduction into the energy grid to return the grid to its safe range.
Calls to respond in this program happen frequently, 10-20 times per year, and typically require your business to respond within five minutes of being alerted.
The Wholesale Demand Response program is offered by Shell Energy and involves participants being asked to reduce energy taken from the grid – by utilising on-site generation or curtailing equipment – when electricity prices are high.
Calls to respond in this program happen year-round, with peaks in the summer period, on a moderate frequency, 5-20 times per year, and require your business to respond within 30 minutes of being alerted to take advantage of its benefits.
Infrequent Response programs are suitable for large energy users that are positioned to respond to calls within 120 minutes to 2 days on an irregular basis (less than six times per year). Programs that fall under this category include the Emergency Demand Response and Network Demand Response programs.
The Emergency Demand Response program is offered by AEMO as part of the Reliability and Emergency Reserve Trader (RERT) function and works to help combat the threat of blackouts caused by loss of energy generation or network constraints in response to extreme weather events or other power system events. By participating in this program, you may be called upon by Shell Energy, under its RERT Agreement with AEMO, to reduce energy usage during periods of very high demand (such as when there is a heatwave, for example). By doing so, you may receive a payment for your participation.
Like the Wholesale Demand Response program, calls as part of the Emergency Demand Response program typically happen year-round but are most prevalent in the summer period, with the frequency of events occurring 1-3 times a year and requiring your business to respond within 120 minutes.
The Network Demand Response program is designed to provide relief when the energy network is under strain, such as when powerlines are nearing capacity. Participation in this program requires your business to reduce energy usage when alerted to help maintain network stability.
Alerts for this program typically happen over the summer period on a medium frequency, about six times per year, and require your business to respond within anywhere from 120 minutes to 2 days. However, it should be noted that the opportunities and benefits of the Network Demand Response Program vary by state and the specific location of your electrical connection to the grid. To find out whether your business is eligible to participate in this program, and what its benefits would be for your business, get in touch with our expert Demand Response team by clicking here.
Participating in a Demand Response program can have a number of benefits for your business, including helping to unlock additional revenue streams. However, there are a number of factors that may influence whether your business is able to participate in a Demand Response program, including:
At Shell Energy, we take the time to get to know every aspect of your business before recommending a Demand Response program that is suited to your business’ capabilities and goals. We also want you to make the most of your investment and will continuously work with you to ensure you’re maximising the amount of value that it’s possible for your business to unlock through DR.
To learn more about whether your business is eligible for participation in a DR program, and how, if so, you can take advantage of the opportunity presented by the predicted hot summer ahead to create additional revenue streams, get in touch with our expert Demand Response team by clicking here or calling us on 13 23 76.
1Reference: http://www.bom.gov.au/climate/ahead/outlooks/
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6 January 2021
Shell Energy's Demand Response program rewards your business for reducing the amount of electricity it takes from the grid during very high usage periods.
8 May 2024
Learn more about the Reliability and Emergency Reserve Trader (RERT) scheme and how your business may be able to unlock additional revenue this summer by participating in it.
5 April 2022
Over summer, Shell Energy enabled the release of power to the grid by working closely with participating Demand Response customers, while helping them earn additional revenue for their participation.
