The Australian Energy Market Commission (AEMC) has released the eagerly awaited interim report for its Reliability Frameworks Review.The report examines several Finkel Review recommendations to improve the reliability of our electricity supply, including demand response.

Demand response is when customers are paid to reduce their electricity consumption during periods of peak demand. The AEMC’s report confirmed that the more demand response there is in the system, the lower the risk that the market operator will need to intervene by issuing directions, using out-of-market energy reserves or relying on involuntary load shedding.

The report also highlighted the benefits for those customers who purchase electricity at wholesale rates. By reducing their consumption during peak demand periods, businesses can bring in extra revenue instead of shelling out for extremely high spot prices.

A part of ARENA’s Advancing Renewables program, Flow Power’s demand response trial will see our kWatch Intelligent Controller rolled out to 95 customers over the next three years. The controller keeps customers informed of current and projected wholesale spot prices and provides real-time alerts when the electricity network is approaching peak demand. This lets the customer make an informed decision on whether to temporarily power down.

The AEMC notes that Flow Power’s total demand can be reduced by up to 45 per cent by notifying customers of a high price event – a big win for network reliability as well as those companies’ bottom lines.

The AEMC Reliability Frameworks Report confirms what we at Flow Power have known for years: that intelligent demand response is a key part of building a better electricity system for everyone.