ARENA and AEMO are calling for proposals for our demand response pilot program.
APPLICATION DEADLINE EXTENDED TO 5pm AEST 17 July 2017
On May 19 2017, ARENA and the Australian Energy Market Operator (AEMO) announced their intent to develop a demand response initiative to manage electricity supply during extreme peaks and grid emergencies.
On June 23 ARENA and the NSW Government announced additional funding for projects in NSW.
This three-year pilot program will trial demand response in the National Electricity Market (NEM).
The initiative will aim to provide approximately 160 megawatts (MW) of reserve capacity which can be called upon by AEMO if operating reserves in the NEM fall to critically low levels.
In total, $37.5 million in funding is available across the NEM.
A total of $15 million will be available specifically for NSW projects ($7.5 million from the NSW Government matched by ARENA), which will aim to secure approximately 60-70MW of reserve capacity.
The remaining $22.5 million in ARENA funding will be available for the rest of the NEM, excluding NSW, which will aim to secure approximately 100MW of reserve capacity.
ARENA is now calling for applications under a competitive funding round.
Applications are open from Thursday 8 June 2017.
Register your intent to apply by Friday 16 June 2017 by emailing firstname.lastname@example.org
Applications close on 5pm AEST Monday July 17 2017.
Key application documents are included below. For queries regarding this initiative, please email email@example.com
Background & Overview
In May this year, ARENA and AEMO signed a Memorandum of Understanding to work together on proof of concept projects.
On May 19, ARENA and AEMO announced a joint initiative to trial demand response to provide reserve capacity during extreme peaks and emergencies.
On May 19, ARENA and AEMO also held an A-Lab Accelerate innovation workshop to consult with industry stakeholders on the design of a demand response program.
On May 22, ARENA put out a Request for Information (RFI) to ask industry stakeholders to provide feedback on the proposed pilot scheme to help inform the parameters of a competitive round.
On June 23, ARENA and the NSW Government jointly announced that an additional $15 million in funding for NSW projects, of which $7.5 million is provided by the NSW Government to be matched by ARENA.
ARENA received more than 50 responses to the RFI, summary of these results will be provided during the competitive round process.
ARENA has received more than 80 registrations of an intent to apply for funding.
This demand response initiative aligns with ARENA’s new Investment Plan which includes delivering secure and reliable electricity as one of the investment priorities.
How it will work
Demand response involves paying consumers to reduce their energy consumption or free up stored supply on request.
During extreme peak periods or emergencies, demand response can help manage demand for electricity by freeing up temporary reserve capacity, easing the strain on the electricity system and avoiding involuntary load shedding.
This three-year pilot program is looking to trial approximately 160MW of demand response to manage extreme peaks and grid emergencies, with the projects to commence this summer 2017-18.
We are seeking to demonstrate a range of different demand response approaches including delivery by demand response aggregators, retailers, networks and directly by large energy users.
We aim to create a portfolio of projects using different technologies including industrial processes, batteries, distributed generation, controllable loads and smart appliances (such as pool pumps, heating and cooling).
Under the initiative, ARENA will provide grants to fund technology for energy users to become demand response-enabled, including metering, monitoring, storage and distributed generation equipment and set up costs.
If demand response providers are dispatched by AEMO in response to an extreme peak or grid emergency, AEMO will pay for usage under its existing Short Notice Reliability and Emergency Reserve Trader (RERT) scheme.
All ARENA-funded projects will be required to sign up to AEMO’s Short Notice RERT scheme.
NSW projects will be assessed separately, and will receive payments from both ARENA and the NSW Government.
ARENA is looking for applications will help us to deliver the objectives of the competitive round as set out below:
- Demonstrate that demand response is an effective source of reserve capacity for maintaining reliability of the electricity grid during contingency events, and that demand response resources can be rapidly developed for deployment from summer 2017/18.
- Provide an evidence base to inform the merits and design of a new market, or other mechanism, for demand response to assist with grid reliability and security, allowing for greater uptake of renewable energy.
- Improve the commercial and technical readiness of demand response providers and technologies, in particular to help demonstrate and commercialise the use of demand response for grid security and reliability.
These information sessions will be cover both the RERT and the ARENA demand response initiative.
Please email firstname.lastname@example.org.
au to register your attendance for any of the sessions below:
WHEN: Wed 14 June 2017, 9:30am – 12:30pm
WHERE: Intercontinental Melbourne Rialto 495 Collins Street Melbourne
WHEN: Thu 15 June 2017, 9:30am – 12:30pm
WHERE: Adina Plaza 2 Flinders Street Adelaide
WHEN: Tue 20 June 2017, 9:30am – 12:30pm
WHERE: Sir Stamford Circular Quay 93 Macquarie Street Sydney
WHEN: Thu 22 June 2017, 9:30am – 12:30pm
WHERE: Stamford Plaza Brisbane Cnr Edward & Margaret Streets Brisbane
Funding and key dates
The total ARENA funding allocation is approximately $30 million over three years, which may be increased or reduced at the discretion of the ARENA Board. An additional $7.5 million in funding has been allocated by the NSW Government for projects in NSW.
- Funding round open – Thursday 8 June 2017
- Register intent to apply – 16 June 2017
- Submit feedback on draft funding agreement and knowledge sharing plan – 16 June 2017
- Final funding agreement released – 23 June 2017
- Applications close – 5pm Monday July 17 2017
- Assessment and shortlisting – July-August 2017
- Funding agreements signed – September 2017
- Projects go live – December 2017
ARENA will advise all applicants in writing of the outcome of their application.
How to apply and assessment
- Read the Demand Response Competitive Round Funding Announcement and all related key documents (see below)
- Make sure you are eligible to apply
- Register your intent to apply for funding by emailing email@example.com
- Prepare responses that address each of the merit criteria, including all required supporting documentation
- Submit your application by the due date using ARENA’s Grant Management System ARENANet
A total of $37.5 million in funding is available under the Competitive Round. $22.5 million in ARENA funding is available for projects across the NEM, excluding NSW.
An additional $15 million ($7.5 million from ARENA, $7.5 million from the NSW Government) will be available for project located in NSW.
A separate application must be submitted for projects located in NSW, noting the following:
- You may apply for funding in other NEM regions (SA, Vic, Qld, Tas) and in NSW but you must prepare two applications.
- You may also apply only for NSW funding. You may also apply only for the rest of the NEM.
- Applicants who wish to apply for NSW funding do not need to be based in NSW, but the demand response reserves (the MW loads) must be located in NSW.
- Applications across the rest of the NEM outside of NSW will be assessed against each other.
- Applications for NSW-based projects will be assessed separately
The closing date for all applications has been extended by one week. Applications will now be accepted until 5pm AEST on Monday 17 July 2017.
ARENA will award grant funding to eligible applications on the basis of a competitive merit criteria assessment.
Merit will be assessed on the basis of:
- Contribution to the Advancing Renewables Program Outcomes and the objectives of the competitive round
- Applicant capability and capacity
- Project design, methodology and risk
- Financial viability and value for money
- Knowledge sharing
Further information on the application requirements and assessment process can be found in Funding Announcement.
Please review all the following documents in preparing your application:
ARENA Funding Agreements
- ARENA Funding Agreement – Non NSW Projects
- Compare Funding Agreement – Non NSW Projects (DRAFT TO FINAL VERSION)
- ARENA Funding Agreement – NSW Projects
- Compare Funding Agreement – Non NSW Projects to NSW Projects
ARENA Knowledge Sharing Plans
- Knowledge Sharing Plan (Non NSW Projects)
- Knowledge Sharing Plan (NSW Projects)
- Compare NSW Knowledge Sharing Plan to non-NSW Knowledge Sharing Plan
- Project Plan template
- Departures and/or compliance with the ARENA Funding Agreement and AEMO RERT Panel Agreement
- Returnable schedules for ARENA Funding Agreement (Non NSW Projects)
- Returnable schedules for ARENA Funding Agreement (NSW Projects)
- Returnable schedules for AEMO RERT Panel Agreement
- Consent to Disclosure of Agreements and Arrangements
- Demand Response Competitive Round FAQ’s
- Public Information Session Presentation
- Funding Round Summary
- Knowledge Sharing Plan Discussion
ARENA invests public money in renewable energy projects and sharing of project knowledge and data that supports commercialisation outcomes is the return ARENA expects on that investment.
All projects are expected to share knowledge from their projects.
For further detail on knowledge sharing, read the Knowledge Sharing Plan and Discussion Paper.
For any queries, please contact firstname.lastname@example.org