Understanding how Shell Energy’s Demand Response program works

See our Demand Response (DR) program in action through a working example. Meet Carol, Operations Manager at a fictional large Australian biscuit manufacturer, and discover how her business earns two types of payment for participating.

How Shell Energy’s Demand Response program works in practice

Carol’s manufacturing business is like many large Australian businesses on a Shell Energy retail electricity contract, always looking for ways to unlock additional value from their energy assets. By enrolling in Shell Energy’s Demand Response program, they’ve turned the manufacturer’s on-site generation capacity into a new revenue stream.

Here’s what happens when a Demand Response event is called. On a hot summer’s day, the electricity grid comes under pressure as air conditioning demand across the country peaks. To help maintain grid stability, Shell Energy sends Carol a dispatch alert. Her business responds by switching production to its on-site backup generator, temporarily reducing the amount of electricity it draws from the grid. Businesses without on-site generation can respond in a different way, by powering down selected equipment during the event window.

The two payments participating businesses receive

Businesses enrolled in Shell Energy’s Demand Response program earn two types of payment:

• A dispatch payment – received each time your business responds to a Demand Response event
• A quarterly availability payment – received on an ongoing basis, even when no events are called, in recognition of your business’s readiness to respond

Together, these payments give participating businesses a predictable revenue stream from their energy contract, alongside the ability to earn additional dispatch income when events occur.

Why being a Shell Energy retail customer matters

Because Carol’s manufacturer is also a Shell Energy retail electricity customer, her account team has a deep understanding of the business’s energy consumption patterns. This helps Shell Energy identify the best opportunities for the manufacturer to participate in DR events, and helps Carol maximise the revenue her business earns from the program.

For Carol and her team, getting paid to help support Australia’s electricity grid isn’t just a smart commercial decision – it’s a genuine win-win.