Capacity Charge Management: reducing organisations’ annual capacity charges

Capacity Charge Management: reducing organisations’ annual capacity charges

Western Australian businesses can save up to 25% on energy bills

Capacity charges typically make up one quarter of Western Australian business’ electricity bills, and are calculated annually by the Australian Energy Market Operator (AEMO).

The amount charged is based on your previous year’s energy consumption during the system peak demand intervals.

Enel X helps you save on capacity charges by advising you when these intervals are likely to occur, so that you can reduce your energy consumption to avoid incurring this cost. This is done by making temporary adjustments to equipment such as powering down pumps, chillers or compressors, or by switching from grid power to a backup generator or battery storage, with little to no impact on operations.

We currently work with 70 sites in Western Australia, and help them save up to hundreds of thousands of dollars on their energy bills each year.

We’ve partnered with Enel X since 2011, exploring how we can save money on our electricity usage. While the way we do this has changed considerably over the years, Enel X has always provided us with manageable and clear solutions to provide savings. The platform and notification service is easy to use and reliable, and the results achieved have always been of significant benefit to our business. I highly recommend any medium to large business look into their energy management program to see how it could benefit their bottom line.

Stuart Bain, Operations Manager

Rigters Supermarket Group (Rigters SUPA IGA, Queens SUPA IGA and Wonthella SUPA IGA)

How capacity charges are calculated

AEMO identifies the four days between 1 December and 31 March that experienced the highest system peak electricity demand. You’re then allocated an annual capacity charge that correlates with the median amount of energy you used during the 1.5 hour system peak periods on these days.

Calculating these peak days however, is not so simple. On each peak day, AEMO identifies the three half-hour trading intervals that had the highest demand for electricity, creating a pool of 12 intervals. The median demand of your business during those intervals gives your Median Peak Load value for the next capacity year.

To manage and reduce your capacity charges, you need to reduce energy usage during these system peak intervals.

Forecasting peak days using our predictive algorithms

Our leading technology has a high accuracy rate of predicting when system peak demand intervals are likely to occur, allowing us to provide you with advance notice so that you can reduce your energy use accordingly. It's been designed to target maximum capacity charge reduction potential while minimising dispatch frequency and quantities.

Our technology leverages advanced machine learning algorithms and statistical models to identify system peaks which are driven by a number of variables including temperature, wind speed and climatic events such as bushfires and storms.

24-7 support to help you maximise savings opportunities

Our team provides daily week-ahead forecast emails that allow you to plan for potential peak days. We closely monitor demand and provide start and end times that are as close as possible to the peak periods to reduce unnecessary prolonged action taken by your business.

Our support team is available 24-7 to help you. If you don’t respond to our email or SMS notifications advising of potential peak days, we’ll give you a call to ensure your team is ready to respond.

In the 2018-19 summer, Enel X correctly predicted all system peaks, saving our clients a total of $6.9 million.

Our experienced team has helped Western Australian businesses to manage their energy costs since 2010.

Organisations with high energy usage are well suited to participate in this program, such as manufacturing, food and beverage facilities, shopping centres and agriculture.

Contact us to learn more about the program details.

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