What is Emergency Response through the Peak Demand Reduction Scheme?
With the retirement of aging coal-fired generators, the NSW electricity grid urgently needs new forms of dispatchable capacity to maintain reliability. The NSW Government is addressing this with the new Peak Demand Reduction Scheme (PDRS) to incentivise energy users to reduce demand in grid emergencies. Large energy users can participate through Enel X’s Virtual Power Plant (VPP) and receive an annual payment. This is in addition to revenue received for reducing your demand at times of grid stress.
How does it work?
Grid Need
On particularly hot summer afternoons, there may be insufficient supply to meet electricity demand. NSW Government is incentivising flexible demand to be available in case of those grid emergencies.
VPP activates
When those grid emergencies eventuate, Enel X’s VPP will notify customers through phone, text and email. In summers in which no grid emergency eventuates, Enel X will work with customers to demonstrate their capability in order to prove they were available in case of grid emergency.
Customer responds
Using pre-agreed curtailment plans, customers reduce their electricity usage or switch to backup forms of generation.
Earn regular payments
In return for this service, Enel X can generate Peak Reduction Certificates, which are traded to retailers under the PDRS. We share these proceeds with customers for their participation in supporting grid reliability through Enel X’s VPP.
An enduring opportunity
Setting up your business to respond will result in a long-term revenue stream.
Additional revenue stream
Earnings through PDRS are in addition to what customers can earn for curtailing at times of high spot price.
Proven experience
Enel X is the only market participant with proven capability for providing DR compliant with the requirements of the PDRS.