What is Demand Response and how does it work?

Demand Response (DR), also known as Demand Side Response, DSR or Demand Management, is an energy flexibility program used globally as a cost-effective way to maintain grid reliability and security. This program extends its reach to a diverse spectrum of energy users, including businesses, government agencies, and households.

Participating in Demand Response means that energy users can actively contribute to grid stability and, in return, enjoy financial incentives. They achieve this by either reducing their electricity consumption or activating an onsite generator in response to a signal. In simple terms, Demand Side Response empowers electricity customers to proactively and voluntarily adjust their electricity consumption patterns to gain financial benefits.

• Emergency Response
• Peaking Response
• Frequency Control
• Load Shifting

• In New South Wales, the government has introduced new incentive schemes—such as the Peak Demand Reduction Scheme—due to the critical risk of supply shortfalls in the coming years.
• In Western Australia, Emergency Response is incentivised through schemes that reward participants for being on standby for the Australian Energy Market Operator (AEMO) to call upon when traditional generation is insufficient to keep the lights on.
• In the remaining states of Australia, Emergency Response is largely provided through the Reliability and Emergency Reserve Trader (RERT). AEMO calls on electricity users to reduce grid power when demand outstrips supply.

Enel X participates in each of these programs by offering our clients’ energy load during grid emergencies, who are paid for their contribution.

Loads with high levels of flexible demand can participate in regular Load Shifting Demand Response. This means increasing demand during times of low prices, usually during the middle of the day, and decreasing a corresponding amount of demand during times of high prices, usually the evening peak period. The value this provides is particularly important as the grid becomes more and more powered by solar, with high levels of generation during the day and a steep drop in solar generation levels during the evening.

If you have an asset with high levels of flexible demand, such as chillers that power refrigerated spaces, or battery energy storage systems, Enel X can support your participation. We can do this as your electricity retailer, or through other mechanisms that allow you to provide demand response without impacting your retail arrangements.

Enel X makes participation easy. We take care of the complex details so you can stay focused on running your business.

1. Our expert team will work with you to identify your energy reduction potential and create a strategy that delivers maximum value with minimum impact to your operations.
2. We install necessary metering devices at your facility to establish communication with our Network Operations Center (NOC), so we can monitor your energy consumption levels in real-time.
3. Your site is then enrolled and ready to respond when a dispatch begins. Our team remains on standby to support you at all times.
4. Throughout the process, we fully manage enrolment, measurement, verification and payments on your behalf.

• Notification: When there is a need for demand response, Enel X puts its VPP into action. Enel X will notify you via email, phone or SMS, depending on your preferences, to inform you when the dispatch will begin and end.
• Response: At the start of the dispatch, your facility will reduce its electricity usage according to your predetermined plan - either manually or automatically through our Network Operations Center (NOC).
• Support: Before, during, and after a dispatch, our NOC remains in communication with your facility. Our staff is available 24x7x365, supporting you to ensure that you achieve the highest possible levels of performance and payments.

Businesses and some government agencies are already being rewarded for one or more forms of Demand Response. To learn more about your options, get in touch with one of our experts.