Post by Australian Energy Regulator

VIOTAS and Enel X have been granted 5-year regulatory sandboxing trial waivers, allowing them to expand their participation in the Wholesale Demand Response Mechanism (WDRM). The WDRM enables large electricity users to help balance the grid by reducing their electricity consumption during periods of high demand and high prices in exchange for payment. By lowering demand at peak times, it can help put downward pressure on wholesale electricity prices and, ultimately, energy costs for consumers. Currently, participation in the WDRM is limited to sites with a single grid connection point. Sites with multiple connections, such as manufacturing plants, ports, logistics hubs, water treatment facilities and data centres, are generally unable to participate because of the risk of ‘load shifting’. Load shifting can occur when a site reduces demand at one connection point during a high-price event but increases consumption at another. This can create the appearance of a demand reduction without any actual decrease in overall electricity use. The trial waivers will allow VIOTAS and Enel X, which provide demand response services to large commercial and industrial energy users, to each trial up to 10 sites with multiple connection points in the WDRM. They will measure the customer response across all connection points to ensure there are genuine demand reductions. These trials will test new ways of managing peak demand, help more customers take part in the WDRM and provide useful evidence to inform future rule-making considerations. We have applied a range of conditions to the waivers to support transparency and ensure consumer benefits are delivered. To find out more about trial waivers, visit https://lnkd.in/gXMZ7X6Q