Perth, November 26, 2024 – As Western Australia (WA) undergoes a rapid energy transition, the Australian Energy Market Operator (AEMO) is finding new ways to keep the lights on as coal retires. Large energy users are becoming electricity ‘prosumers’ (producers and consumers), by reducing energy demand at peak times or when supply-demand is tight. This is increasingly important as summer approaches, with a forecast supply shortfall during the hotter months1.
Organisations spanning industrial gas processors, steel manufacturers, hospitals, meat processors, supermarkets and cold storage facilities have signed up to be part of Enel X’s ‘Virtual Power Plant’ (VPP) to support the grid. The VPP sends a signal to the businesses to quickly reduce energy consumption when the grid is under strain, which has the same effect as a physical generator or big battery coming online. This important service, known as Demand Response, helps to balance supply and demand and mitigates blackout risks.
AEMO has certified this VPP portfolio as being an active part of the energy market as of October 1, 2024. These WA businesses, who are conscious about playing their part in the local energy transition, will participate in the Wholesale Electricity Market (WEM), year-round and for several years to come. This VPP will play a critical role in the future of electricity reliability in the state.
Stephen Lamond, Managing Director at Thompson & Redwood, said, “We’re proud to support the community by using less power when called upon by the Enel X VPP, which helps to avoid blackouts by freeing up energy supply for those who need it most. What’s more, we get paid for using less energy, whilst supporting our local community.”
WA is seeing a new era in energy security as recent VPPs have only previously run in summer period. When large energy users power down as part of a VPP they receive regular payments for both committing to be available when the grid is strained, and for using less power when called on in emergencies.
Katrina Burns, Head of Demand Response WA, Enel X Australia, added, “Demand Response is critical to ensuring the reliability of electricity supply as we transition to renewable energy, whilst keeping up with rapidly growing demand. This is much easier and cheaper than building costly new transmission infrastructure and generation for occasional use, and helps keep downward pressure on energy prices. Demand Response is a win-win-win for businesses, the energy market, and the broader community.”
The broad range of businesses in Enel X’s VPP came to the rescue to help prevent blackouts in last summer’s extreme heatwave conditions, which included the top six highest demand days in the WEM since its inception. Enel X operates the largest C&I VPP in WA, offering customers unmatched access to all energy market programs.
