Responding to the market

Designed in collaboration with the AEMO and other stakeholders, the ARENA initiative is set to reduce emissions and create smarter energy security in Australia. The aim is to sustain supply during unplanned outages over the next three years. This is done by smoothing out peaks in electricity demand.

This milestone initiative should create opportunities for customers to cut costs – while keeping their lights on – via demand response. Specifically, participating customers will get paid to reduce energy use during peak demand times. This is similar to campaigns run by Ausnet Service (Critical Peak) and other networks.

Ultimately, the initiative, like all demand response, is intended to:

  • Help avoid unplanned outages by minimising peaks in demand
  • Create fairer electricity prices over the long-term

Drive awareness of renewable energy and demand response across Australia

Designing the industry

Energy Networks Australia CEO, John Bradley, said:

‘Rewarding customers for their energy choices is an integral part of [transforming the electricity network]. For instance, networks could buy grid support from millions of customers in demand response programs or using household solar and storage to save $16 billion in network costs by 2050.’

Demand response can mean networks are able to delay or even cancel new network developments.

What’s more, the ARENA initiative will further integrate demand response with low cost and intermittent generation into the grid. This customer-driven energy dynamic should help customers and networks save millions in energy costs – as long as resources for energy reliability and affordability are available.

Businesses who buy their electricity from the wholesale market, like Flow Power customers, are in the perfect position to take advantage of demand response programs. They are already responding to the peak signals and mastering the power market. By taking part in these programs, businesses can be paid an extra dividend for their normal operations.