Sydney, 10 October 2024 – With increasingly challenging grid conditions due to weather conditions, low wind and hydro output, coal outages and resultant spiking electricity prices, flexible demand is an increasingly critical resource to help firm the grid and put downward pressure on electricity prices for all consumers.
Businesses and organisations in the greater Sydney region can provide their flexible demand – the inherent ability to adjust when grid power is used - as part of Enel X’s Virtual Power Plant (VPP) to help ‘firm’ the grid and keep the lights on. Firming capacity helps the grid to safely integrate renewable energy assets. Participants are paid both for committing to be available, and when grid energy consumption is reduced for set periods of time, generally only a few times a year.
Judith Damiani, Chief Executive of Western Murray Irrigation, said, “Western Murray Irrigation has been supporting the grid across multiple Demand Response programs with Enel X’s VPP since 2020. Participation is straightforward and works well for us. An automated system sends a signal to drop demand when the grid is under strain, then our backup generators kick in and keep our water pumps running to provide irrigation to hundreds of mainly wine, grape and citrus growers in south-western NSW, a hot and dry region. It helps to keep the lights on for everyone in the broader community, and we are rewarded for participation.”
The Hon. Matt Kean, Chair of the Climate Change Authority, commented, “As coal generation retires, firming capacity and flexible demand is a key resource to support the grid when the sun isn’t shining, or the wind isn’t blowing. Demand Response is a key way to help the transition and help keep energy prices down.”
Enel X operates the largest demand response VPP1, both globally and locally, which intelligently orchestrates businesses to use less energy at key times to help firm the grid. This is the quickest, cheapest and most affordable way to firm renewables on the grid, as it calls on distributed energy resources within the community, rather than turning on high emitting gas peaking plants or building new infrastructure.
Carl Hutchinson, Country Manager of Enel X Australia & New Zealand, said, “We’ve had an incredibly positive response from business in the Greater Sydney region, including the Central Coast, Newcastle and Wollongong. Across universities, licensed clubs, metals and steel manufacturers, other industrials, farms and vineyards, we are developing tailored energy reduction plans that allow for VPP participation to firm the grid and earn revenue equivalent to around 10% savings on annual electricity spend.”
1. National Electricity Market (NEM) Registration and Exemption List, November 2023.