The AGL Demand Response project is one of 10 pilot projects awarded funding under ARENA and AEMO''s flagship $35.7 million Demand Response Initiative, along with support from the NSW Government.
The AGL Demand Response project began December 2017 and involves the deployment of 18 MW of demand response reserves, increasing to 19 MW and 20 MW in years two and three respectively. Seventeen megawatts will come from commercial and industrial participants, while the remaining 3 MW will come from AGL''s NSW residential customers. The reserves will be delivered when called upon by AEMO under the Short Notice Reliability and Emergency Reserve Trader (RERT).
More than 8,000 customers participated in AGL''s residential behavioural demand response program, a small-scale trial of residential controlled load demand response focussing on air conditioners and electric vehicle charging, and up to 20MW of commercial and industrial demand response for AEMO’s Reliability and Emergency Reserve Trader program.
The trial successfully demonstrated the use of demand response as an effective source of reserve capacity in the National Electricity Market.
Key findings from each of the trial streams included:
Residential Behavioural Demand Response
Residential Controlled Load Demand Response
Commercial and Industrial Demand Response
This report covers the period June 2019 to May 2020 and covers the performance of the Commercial and Industrial (C&I) portfolio over that period.
Major utility AGL will deliver up to 20 MW of demand response, all of it in New South Wales, from across its commercial, industrial and residential customers as part of ARENA and AEMO’s demand response trial.
AGL Demand Response project will deliver its demand response reserves through a combination of residential direct load control (DLC) and behavioural demand response, together with commercial and industrial demand response.
The DLC Peak Energy Rewards – Managed For You program allows residential customers to nominate their own devices, such as air conditioners and electric vehicle charging stations, to be remotely controlled by AGL during a demand response event. The Peak Energy Rewards – Managed By You program involves AGL asking residential customers to reduce their electricity usage during demand response events. In return for participating in the Peak Energy Rewards programs, customers are rewarded with a variety of financial incentives.
Large commercial and industrial energy users such as shopping centres, telecommunications companies, water utilities and manufacturing plants have also signed on to participate in AGL''s commercial and industrial demand response portfolio. As also high energy consumers, slight shifts can have a large impact on demand during peak times.
AGL''s Peak Energy Rewards programs are exploring new ways to intelligently manage behind-the-meter distributed energy resources and to motivate customers to engage with their energy use. AGL is offering customers the flexibility to either have their loads directly controlled, or to choose which loads to curtail themselves. The approach requires new device control and customer engagement strategies that could make demand response in the residential sector more widely applicable.
The project will help to establish whether demand response can assist in maintaining a stable electricity grid. It will also help ARENA understand how and to what extent communication technology can play a role in the residential demand response market.
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As companies go, there aren''t many more embedded in Australia''s history than AGL.
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Demand Response allows commercial, industrial or institutional organisations to offer their capacity to support the electricity grid in exchange for regular payments. It helps to balance the intermittency of variable wind and solar power by providing instant, dispatchable capacity to the grid when called on. Businesses respond by powering down or switching to a backup power source to give their capacity back to the grid. They do this via our Virtual Power Plant (VPP) which has unmatched access to a range of market programs.
The Australian Energy Market Commission (AEMC) is the expert energy policy adviser to Australian governments.We make and revise the energy rules and provide advice.
Energy is essential to the operation of modern Australian society and access to energy for all Australians enables participation in our modern economy.
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