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Australia’s energy transition is accelerating

As we build more wind and solar power each year, the retirement of many of our largest coal-fired power stations is on the horizon. To make this transition work, we need to build new forms of power capacity that ensure the reliability of the power grid while balancing the natural variability of renewables.

The role of Virtual Power Plants and Demand Response

Up to 19GW of new dispatchable resources are needed by 2040 to back up renewables in Australia (AEMO). Demand Response (DR) is one of the most promising options available to support renewable power, and is expected to play a large role in our future power system. A VPP is a collection of distributed energy assets - batteries, generators and onsite equipment - that are aggregated to support the grid with dispatchable capacity. Our VPP aggregates demand-side resources and offers the capacity as a single ‘virtual power plant’ to the energy markets to keep the system reliable and secure, while paying energy users for their participation.

How demand response works

Virtual Power Plant

How do businesses participate?

Businesses contribute their capacity to our VPP by being flexible with when they use grid power, by either powering down or switching to backup power sources in response to a grid signal. Participation is orchestrated via our 24/7 state-of-the-art Network Operations Centre. Businesses can be flexible with when they offer DR to suit their operational needs. Many businesses are seizing this new opportunity to significantly improve their bottom line while supporting a cleaner and more competitive future. Enel X is the market leader in VPPs and DR, with a comprehensive service that helps businesses maximise what they can earn.

Support Sustainability and Circular Economy

DR represents an opportunity for a more sustainable electricity system with the use of existing assets to provide additional power supply, and the reduction of CO2 emissions. By 2040 increased DR and storage could decrease renewable energy curtailment from 7% to 1.6%, avoiding 30 million tons of CO2 emissions (IEA). DR shapes new energy consumption behaviors and brings about enhanced consumer awareness. Circular economy benefits of DR are linked to an increasing share of renewable sources on the grid, and the optimisation of existing generation and storage assets.

Support a circular Economy