What is Wholesale Demand Response?
In today's volatile market, the National Electricity Market (NEM) urgently needs new forms of power capacity to balance renewables and to maintain a reliable and secure electricity grid. Wholesale Demand Response allows large energy users to offer demand flexibility via our Virtual Power Plant (VPP) to provide critical grid firming capacity. This puts downward pressure on spiking electricity prices and earns participating businesses new revenue.
paid to customers in Australia & NZ
global demand response capacity
customers in Australia & NZ
Get paid for your flexibility
There are multiple ways to participate in the wholesale market, from providing the electricity of onsite backup generators to load reduction under the Wholesale Demand Response Mechanism. We advise our customers on the mechanism that best meets their site’s operational characteristics, commercial requirements, and sustainability objectives. Our customers earn a recurring new revenue stream, which can offset rising energy costs.
The business opportunity
DR is increasingly valuable
The cost of power in the NEM is highly concentrated in critical hours. Wholesale Demand Response allows businesses to capture this value, which translates into a material reduction in the annual cost of powering their business. And as coal stations retire and renewable power continues to grow, the value of demand response is predicted to increase.
The WDRM is bankable
Unlike other mechanisms such as the Reliability and Reserve Trader (RERT) that rely on tenders, the WDRM is a permanent mechanism of the NEM, meaning businesses can count on an ability to participate and earn revenue year-round, year after year.
Wholesale DR is low risk
Wholesale Demand Response allows businesses to offer demand flexibility to the market while still buying their power through a traditional fixed price supply contract. This means you can participate without taking on any new risk or volatility in the price you pay for power. It works independently from your retail contract, allowing you to keep earning money from VPP participation each year, regardless of your retail supplier.
Participation can be flexible
While Demand Response is valuable, your core operations come first. Your participation can be designed around your operational priorities. Put simply, the market will take what you can give it. At Enel X, we understand your operations and then to design a plan which will maximise your earnings subject to your operational limits.
Our market-leading and comprehensive service offering includes:
Technical and operational DR evaluation
Revenue planning and business case
Metering and controls (at our expense)
Connection to our market-leading VPP platform
Market compliance and risk management
24/7 Network Operations Center bidding and dispatch management
Trading and co-optimisation of DR value