How to increase the value of your retail energy contract with Demand Response (DR)

What if there was a way for your large business to unlock additional value from your on-site energy assets and earn money from your electricity contract with Shell Energy? That’s where Demand Response comes in – a program that not only supports Australia’s energy grid but also helps your business to unlock a new revenue stream. 

As a Shell Energy retail electricity customer, you can get paid for reducing your energy usage during peak demand periods with minimal impact to operations. 

How Does Demand Response (DR) Work?  

Demand Response (DR) involves large energy users – who have flexible loads, on-site generation or battery storage assets – being contracted to reduce their energy use during periods of high demand or high spot prices. Customers are paid for their participation in the DR program and can also realise on-bill savings when electricity consumption during peak periods is reduced. 

If you’re interested in more background information, check out our article explaining demand response.  

While playing an important role in providing stability to the energy grid, businesses can also unlock revenue by participating in a demand response program.  

Depending on your set-up, your business may be able to enrol in multiple programs, with the opportunity to generate a higher amount of additional revenue.  

The Benefits of Our Demand Response Program:  

1. Earn revenue while meeting your generator testing obligations

Many businesses with on-site generators are required to test them periodically to meet compliance, safety and operational readiness standards. These usually require running the generator under a set load for a set duration. 

By scheduling these tests to align with a DR event, your business may be able to meet both its test obligations and be financially rewarded via a DR program. Through our Trading team, we provide notice of DR events in advance, so you can take full advantage of high energy demand periods. 

2. Earn additional revenue by reducing electricity usage 

This can be done primarily by curtailing your electricity usage during periods of high demand to reduce the amount of energy your business is drawing from the grid, resulting in on-bill savings for reducing energy consumption as well as earning revenue from receiving a DR payment for the response.  

If your business has access to on-site generation such as solar or battery, then these can also be utilised to reduce the amount of energy your business is drawing from the grid during a DR event.  

Notice that a reduction in energy is required to respond to a DR event is given well in advance, so you can plan for and minimise the impact on your operations while unlocking a new revenue stream.  

3. Voluntary participation depending on what your business needs at the time  

We understand that the energy needs of businesses fluctuate, and being able to reduce consumption or switch to on-site generators or storage assets to participate in DR programs might not always be possible. 

Other than a reduction in the payments you receive, or potential termination of participation in the program, there are no penalties for failure to respond to a DR event.

This means that you retain full control over if and when your business participates in a DR event. 

There are also a number of different payment structures available, from capacity based quarterly payments, to spot price share and we can tailor a program to suit your business needs. 

4. Get advance warning of Demand Response events 

Through expert market insight and data from our Trading team, we endeavour to provide our customers with notice of future DR events well in advance.  

Shell Energy calls DR events relatively frequently year-round, with peaks typically in summer. Providing advanced notice of when DR events may take place ensures that your business is positioned to take full advantage of opportunities to generate additional revenue. 

Our DR team can also work with your business to determine which combination of Shell Energy’s DR programs is best suited to your business based on your site’s energy assets and needs. 

Ready to unlock a new level of energy value with Demand Response?  

Participating in Shell Energy’s Demand Response programs can add even more value to your retail electricity contract by unlocking additional revenue streams and on-bill savings while maintaining control over your business’ operations.