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What is Demand Response?

Waves of policy reform and corporate leadership are driving the charge towards net zero by 2050. With this change, we need new forms of power capacity to ensure the reliability of the power grid while balancing the natural variability of renewable power. Taiwan’s Day-ahead Ancillary Service Market in Taiwan Power Company’s (TPC) Energy Trading Platform has been created to allow Virtual Power Plants (VPPs) to offer Demand Response through a market mechanism. This has been designed to promote energy diversification, provide faster-ramping and more flexible ancillary service resources to the energy system to ensure the stability of the grid.

How does it work?

Grid need

Taipower in its capacity as grid operator is responsible for the management and balance of the national electricity system, and therefore the “user” of flexibility. In the face of a grid stability problem or a supply and demand imbalance, Taipower notifies the aggregator of the need for dispatchable capacity to support the system.

VPP is called

Enel X’s Virtual Power Plant (VPP) is called on, who aggregates its customer’s energy load or distributed energy assets made up of onsite equipment, backup generation assets, and battery energy storage solutions across businesses in Taiwan. Enel X offers its portfolio’s capacity to help keep the lights on. We do this in the Day-ahead Ancillary Service Market.

Customer responds

Customers across Taiwan either switch to backup power sources (BESS, backup generation) or reduce or modify energy usage when called on. This makes their power flexibility available to the grid operator, by implementing power modulation plans (manually or automatically). The load reduction is used by the network operator.

Earn regular payments

Customers receive regular payments for both their availability to provide the service, and for when their power is provided to support the grid.  

Advance Taiwan's renewable future

DR allows TPC, independent aggregators like Enel X and others 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 and keep the lights on.  

Demand Response 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. According to the International Energy Agency, by 2040 increased Demand Response and storage could decrease renewable energy curtailment from 7% to 1.6%, avoiding 30 million tons of CO2 emissions.

 

It also triggers circular economy opportunities by shaping new energy consumption behaviors and enhanced consumer awareness. The transition to a circular economy represents opportunities for sustainable innovation, bringing together new business approaches based on sustainable solutions (renewables, reuse, recycling), and on the circular use of physical assets that gives maximization of utilization. Circular economy benefits of Demand Response can be linked to an increasing share of renewable sources and the optimization of existing generation and storage assets.

 

Learn more in our whitepaper.

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Taiwan power flexibility

Our services

Our market-leading and comprehensive service offering includes:

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.

Taiwan's first aggregator

Enel X became Taiwan’s first aggregator in 2016, delivering 138MW for Taipower Company’s demand response audit. We were the first aggregator in the Day-ahead Ancillary Service Market, and have delivered an average dispatch performance of 131.3% to date.

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 137 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.

Future potential

We see great opportunity for growth and value creation in Taiwan’s market beyond Demand Response. As Taiwan's energy market evolves, so too will our solutions across battery storage, electrification of transportation and vehicle-to-grid technology, on-site Solar PV systems, and more.