Demand Response Safeguards WA Energy Supply During Record Summer

This summer WA’s grid faced unprecedented challenges with extreme heat contributing to a surge in electricity demand. With the Wholesale Energy Market (WEM) under pressure, large energy users in WA came together to provide critical grid support to ensure grid stability, prevent blackouts and maintain energy supply across the state via Enel X’s market-leading Virtual Power Plant (VPP) across multiple Demand Response programs.

The summer of 2024-25 saw Perth recording its highest temperature in a decade of 43.6°C in January and Geraldton hitting an all-time high of 49.3°C. Statewide, the mean minimum temperature was the warmest on record, contributing to high electricity demand on the South West Interconnected System (SWIS), which serves the majority of WA’s population.

With forecast supply shortages ahead of the summer season, the Australian Energy Market Operator (AEMO) took action to procure additional capacity reserves to help keep the lights on. Enel X’s VPP was part of the solution, with its commercial and industrial (C&I) customer base across the state curtailing energy use via Enel X’s VPP when called upon by AEMO. These participants acted as a reliable alternative to traditional generation, easing pressure on the grid.

• Emergency Demand Response: During the peak of the summer heat, emergency demand response participants provided around 110 MW of capacity when called on. Participants including aluminium smelters, mining sites, industrial manufacturers, telecommunications, farms and cold stores, came together to support the grid on the state’s hottest days to avoid blackouts.
• Capacity Charge Management: Our capacity charge management program saw 10 events this year, where large energy users curtailed load to avoid a high baseline on their electricity bill’s capacity charges. The response also helps to support the grid on very hot days, helping to avoid load shedding. The events allowed participants to maximise their savings on capacity charges, estimated at $166,000 per MW annually.

Katrina Burns, Regional Manager, Western Australia at Enel X Australia, said, “We’d like to extend our heartfelt thanks to our community of VPP customers who participated in Demand Response programs over the summer.  The extreme conditions underscored the importance of proactive management to ensure grid reliability.

“We look forward to continuing to support the grid with our year-round emergency demand response program, which will activate when supply outweighs demand. This can be due to a number of factors, including potential generator outages and heightened electrical heating loads during winter,” Burns added.

As WA transitions to a renewable energy future, demand response is playing a vital role in bridging the gap between supply and demand. AEMO predicts a growing capacity gap emerging from 2027-28, strongly influenced by projections for growth in electrification of both business and residential sectors, which requires efforts from both the supply and demand-side to ensure the grid remains stable and secure¹.

Enel X will continue to work with the energy market operator, its customer base and new businesses interested in enhancing energy security and supporting sustainability goals to accelerate the grid’s decarbonisation.

^References

^{1. AEMO 2024, WEM Electricity Statement of Opportunities.}