Get paid to cut your power usage through demand response

The AEMO has caused a media frenzy this week by announcing a demand-response trial that could kick-start the move to a smarter energy market.

AEMO CEO Audrey Zibelman, who championed demand response in reforming New York’s Energy Vision program, announced the trial this week, saying:

“If we can reduce the amount of demand, that has the same benefit as the grid, and is a lot less expensive than building a new power plant that is only used for a few hours a year.”

The basic concept is that you cut back your usage at high demand times by using solar or battery storage, reducing usage, or implementing ‘load shifting’ behaviour such as pre-cooling your home in summer before the peak period.  This is designed to reduce and ultimately eliminate the requirement for peaking power plants, such as AGL’s massive industrial gas-fired power plant proposed for picturesque rural Dalton. This in turn removes the insanely high spot wholesale power prices seen last summer, and puts downwards pressure on power prices.

ARENA AND AEMO JOIN FORCES TO PILOT DEMAND RESPONSE TO MANAGE EXTREME PEAKS THIS SUMMER – AEMO media release

Energy industry helps test demand response – The Hon. Josh Frydenberg MP Minister for the Environment and Energy Press release

New AEMO initiative to reward customers could kick-start our smart energy transition

AEMO looks at smarter ways to deal with extreme peaks and heatwaves

ARENA and AEMO join forces to pilot demand response to manage extreme peaks this summer

AEMO and ARENA to pay electricity users to cut their usage in ‘demand response’ trial

Users paid to cut energy usage to help the NEM

ARENA-AEMO launch $22.5m 100MW demand response program

Cash on offer to switch off in summer