The AGL Demand Response project is one of 10 pilot projects awarded funding under ARENA and AEMO’s flagship $35.7 million Demand Response Initiative, along with support from the NSW Government. The project began December 2017 and involves the deployment of 18 MW of demand response reserves, increasing to 19 MW and 20 MW in years two and three respectively. Seventeen megawatts will come from commercial and industrial participants, while the remaining 3 MW will come from AGL’s NSW residential customers. The reserves will be delivered when called upon by AEMO under the Short Notice Reliability and Emergency Reserve Trader (RERT).
How the project works
AGL Demand Response project will deliver its demand response reserves through a combination of residential direct load control (DLC) and behavioural demand response, together with commercial and industrial demand response.
The DLC Peak Energy Rewards – Managed For You program allows residential customers to nominate their own devices, such as air conditioners and electric vehicle charging stations, to be remotely controlled by AGL during a demand response event. The Peak Energy Rewards – Managed By You program involves AGL asking residential customers to reduce their electricity usage during demand response events. In return for participating in the Peak Energy Rewards programs, customers are rewarded with a variety of financial incentives.
Large commercial and industrial energy users such as shopping centres, telecommunications companies, water utilities and manufacturing plants have also signed on to participate in AGL’s commercial and industrial demand response portfolio. As also high energy consumers, slight shifts can have a large impact on demand during peak times.
Area of innovation
AGL’s Peak Energy Rewards programs are exploring new ways to intelligently manage behind-the-meter distributed energy resources and to motivate customers to engage with their energy use. AGL is offering customers the flexibility to either have their loads directly controlled, or to choose which loads to curtail themselves. The approach requires new device control and customer engagement strategies that could make demand response in the residential sector more widely applicable.
The project will help to establish whether demand response can assist in maintaining a stable electricity grid. It will also help ARENA understand how and to what extent communication technology can play a role in the residential demand response market.
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