Power Flexibility: turn energy into a source of competitive advantage

Businesses are earning regular payments for being flexible with their energy use as part of our Virtual Power Plant

Business are supporting Australia's transition to renewable energy, and are contributing to grid reliability by being flexible with when they use grid power.

At Enel X we help businesses harness their inherent power flexibility to gain a competitive advantage by earning new revenue and meeting sustainability targets.

There is a growing need for flexibility on our power grid to keep our energy system stable and secure. Our grid is being disrupted by the rapid uptake of renewables, retirement of traditional coal fired power plants and extreme weather events. One of the cheapest and most reliable solutions are Virtual Power Plants.

Join Australia’s largest Virtual Power Plant

A Virtual Power Plant (VPP) is a collection of distributed energy resources such as backup generators, batteries and industrial equipment, that work together to provide capacity to the grid when needed, and are paid for it.

We operate the largest VPP in Australia (BNEF), and work with hundreds of organisation who join our Demand Response and flexibility programs as part of our VPP.

To participate, businesses strategically alter when grid power is used by switching to onsite backup generation or battery storage systems, or by powering down equipment, in response to a grid need.

We enrol businesses in our VPP leading technical solution and with support of our 27/7/365 network operations centre.

Earn revenue, enhance onsite resilience, and support the wider community

VPP participation brings a number of benefits.

Earn revenue

Earn a significant new source of ongoing monthly revenue, which doesn’t require CAPEX and is expected to grow in value over time.

Businesses typically earn between $50,000 and several hundred thousand per year from participating.

Participation is easy, and we provide the expertise to ensure you extract the most value by enrolling your assets in multiple programs.

Enhance site resilience

Enhance your sites’ emergency preparedness, which will better protect the continuity of power supply to your operations year-round.

Get paid for testing your assets during flexibility events, all with the safety net of grid power behind you. The revenue can be reinvested in further enhancing site resilience, or offsetting electricity or maintenance costs.

Support the renewables transition

Deliver much-needed new capacity to support Australia’s ongoing renewable transition in a more cost-effective way than alternatives. This is beneficial to all energy users.

Protect the grid against power outages

Play an active role in protecting the energy system against power outages during critical times.

Contribute to lower power costs for all energy users

VPPs defer the need for expensive transmission network upgrades or for new power stations to be built.

VPPs also respond to price signals, so when electricity pricing goes up (which can often indicate a supply shortfall), we give flexibility to the grid which lowers electricity prices.

Enel X is the largest provider of flexibility in the world, and locally we have unmatched market access to a wide range of programs.

Participation is safe, with minimal to no impact to your regular operations. We create a tailored solution where you have the ability to opt-in or out at any time to suit your operational needs.

Our programs

Critical peaking

Our VPP provides protection to the grid during supply shortages. These usually occur on hot summer afternoons when demand is high, or when power stations are offline.

In today’s volatile market, power prices can spike to $15,100 / MWh. To put downward pressure on prices, we operate our VPP capacity during extreme spikes - which can often indicate a supply shortfall - and are paid for it.

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Frequency control

The grid needs resources that can quickly respond when large power stations or transmission networks unexpected fail, to prevent cascading grid outages.

Our VPP responds automatically to deviations in the grid’s frequency, to arrest the deviation and avoid any broader or cascading power outages.

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Network support

Flexibility is required when grid stability is under threat within a distinct location.

By offering resources to transmission networks, this can defer expensive network upgrades, costs that ultimately flow on to consumers.

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Capacity charge management (WA)

Capacity charges are calculated annually by AEMO, and depend on how a business contributes to system peaks. Generally, capacity charges make up a quarter of a business’ electricity bill.

Using leading technology and algorithms, we predict system peaks and advise when to reduce grid consumption to lower these charges. We help businesses on unbundled retail contracts decrease their energy bill by up to 25%.

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Wholesale Demand Response (October 2021)

The introduction of a new mechanism will give access to the NEM’s wholesale market to demand-side energy users.

This is currently scheduled for October 2021, and will open a new opportunity for VPP participation in the wholesale energy market.

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The value of flexibility will continue to increase as we see more renewable power on the grid, the retirement of coal fired power plants, new energy market reforms and the emergence of new technologies.

For more information on how VPP participation works, see our technical whitepaper.