Demand Response 101: earn revenue by shifting your energy use

Demand Response 101: earn revenue by shifting your energy use

Turn energy into a source of competitive advantage

Our programs include:

Our VPP provides protection to the grid during supply shortages. These usually occur on hot summer afternoons when demand is high, or when power stations are offline. In today’s volatile market, power prices can spike to $15,100 / MWh. To put downward pressure on prices, we operate our VPP capacity during extreme spikes - which can often indicate a supply shortfall - and are paid for it. Learn more here.

Example situation: A storm causes market energy prices in VIC to spike to extreme levels, above $15,000 per megawatt hour.
Example response: A data centre runs its backup generators for one hour and gets paid the market price.

The grid needs resources that can quickly respond when large power stations or transmission networks unexpected fail, to prevent cascading grid outages. Our VPP responds automatically to deviations in the grid’s frequency, to arrest the deviation and avoid any broader or cascading power outages.  Learn more here.

Example situation: A large coal-fired power station suddenly fails, and the grid’s frequency starts to drop.
Example response: A compressor at a cold storage facility turns off in less than one second for a maximum of 10 minutes.

Earn revenue for reducing grid power consumption during emergencies that threaten grid stability. This is traditionally known as demand response.

Example situation: There’s a heatwave and AEMO has run out of power reserves to meet afternoon electricity demand.
Example response: A water utility reduces its pumping for two hours.

Flexibility is required when grid stability is under threat within a distinct location. By offering resources to transmission networks, this can defer expensive network upgrades, costs that ultimately flow on to consumers. Learn more here.

Example situation: A network utility in NSW calls on demand-side resources to manage its peak demand.
Example response: A hospital runs its backup generator for two hours, delivering its committed reserves.

Capacity charges are calculated annually by AEMO, and depend on how a business contributes to system peaks. Generally, capacity charges make up a quarter of a business’ electricity
bill. Using leading technology and algorithms, we predict system peaks and advise when to reduce grid consumption to lower these charges. We help businesses on unbundled retail contracts decrease their energy bill by up to 25%. Learn more here.

Example situation: A food or beverage manufacturer reduces consumption on a day where Enel X’s technology predicts a system peak.
Example response: A food manufacturer switches from grid energy use, and turns on its backup generator for two to three hours until the peak period passes.

The introduction of a new mechanism will give access to the NEM’s wholesale market to demand-side energy users. This is currently scheduled for October 2021, and will open a new opportunity for VPP participation in the wholesale energy market. Learn more about what this means here.

Featured resources

The four types of Demand Response

Demand Response (DR) is used globally as a cost-effective way to maintain grid reliability and security. Enel X is a global leader in DR solutions for commercial and industrial businesses. Learn about the programs in the National Electricity Market (NEM).

Demand Response a natural fit for Echuca Regional Health

This hospital is enhancing site resilience by participating in multiple DR programs in our VPP. The earnings are reinvested into improving its backup power infrastructure.

Calculate your earnings potential

Complete this three question survey to see how much revenue you could earn with our programs.