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The Wholesale Demand Response Mechanism

The Wholesale Demand Response Mechanism (WDRM) has been created to allow energy users to offer Demand Response (DR) into the wholesale electricity market (and to get paid for doing so). Many businesses across Australia are well-suited to offer DR, and they are seizing this new opportunity to significantly improve their bottom line while supporting a cleaner and more competitive future for Australia. Enel X is the market leader in Demand Response, and it offers a comprehensive service through its Virtual Power Plant (VPP) platform that helps businesses maximise what they can earn from the WDRM.

How does it work?

Grid need

The National Electricity Market (NEM) balances the supply of and demand for electricity in real-time. Depending on this balance, the market produces a different ‘spot’ power price every five minutes of every day. 
 

When demand is very high relative to the available supply, the spot price will spike, and the Australian Energy Market Operator (AEMO) will typically issue a ‘Lack of Reserves (LOR)’ notice indicating that the power grid is under stress.

VPP is called, customer responds

The DRM allows qualifying DR resources to offer their energy capacity into the NEM as a new source of power supply during these critical times. This will help AEMO enhance the reliability of the system, while allowing DR providers to earn the spot power price whenever they are utilised.


For DR resources that offer themselves to the market as a last line of defence for the power grid, they can expect to be utilised primarily during summer evenings for only a few dozen hours each year. 

Earn regular payments

Customers receive regular payments for when their power is provided to support the grid during a dispatch event.  

Advance Australia’s renewable future

DR allows independent aggregators like Enel X to provide additional, dispatchable capacity to support the grid. This new capacity is essential to supporting the renewable energy transition, because dispatchable resources help to integrate variable renewable energy sources onto the grid.
Quarry

Our offering

While valuable, the WDRM is going to be quite complex. AEMO requirements will include unique market registrations, dedicated SCADA connections, real-time market bidding and dispatch procedures, and detailed performance measurement and compliance rules.

 

We approach the WDRM the same way we approach everything we do – with a mission to make it easy for businesses to access this new energy opportunity. To do so, we offer a turnkey service that manages all aspects of WDRM participation.

Our services

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 VPP platform
  • 24/7 bidding and dispatch management
  • Trading and co-optimisation of DR value
  • Market compliance and risk management

Why Enel X?

We are the global market leader

Businesses trust our proven track record as the market leader. Enel X manages the largest world’s largest C&I VPP, with over 7.7 GW of Demand Response resources. Our ambition is to grow this to 10.6 GW by 2023. More than 15,000 global enterprises are doing Demand Response with us across 11 countries today.

We operate the largest VPP in Australia

Businesses trust our proven track record as the market leader. We deliver the most DR revenue, while properly prioritising and protecting your core operations, and ensuring full choice for your retail power supply.

  • >10 years of DR experience in Australia
  • >A$200M in DR revenue delivered to ANZ customers over the past 10 years
  • First VPP to enter the FCAS market and 90% of aggregated C&I DR resources in FCAS today
  • Mission Critical Technology Innovation, 2020 award for DR in the IT sector (Datacenter Dynamics)

Global innovation, local execution

We bring our global leading platforms to local markets. We unlock new opportunities to decarbonize, digitalize and electrify your energy use in ways that will help grow your business.

 

We manage 200 MW of BESS globally today, and plan to have 525 MW of installed capacity by 2023. We are also growing our world-leading electric mobility footprint, evolving from 230,000 charging points to 780,000 in the next two years.

Melbourne