ARENA and the Australian Energy Market Operator have announced their intent to pilot demand response in the National Electricity Market.

This three-year pilot program is intended to drive innovation in demand response to manage extreme peak demand and respond to grid emergencies.

ARENA will allocate up to $22.5 million in funding over three years to support approximately 100 megawatts of reserve capacity.

ARENA will provide grant funding to support technology enablement costs associated with demand response projects.

If demand response is activated, AEMO will pay for usage under their short notice Reliability and Emergency Reserve Trader scheme.

The initiative will be open to a wide range of demand response approaches by aggregators, technology vendors, retailers, networks and large energy users.

We are hoping to trial a range of technologies and approaches including industrial processes, batteries, distributed generation, controllable loads and smart applicances (such as pool pumps and thermostats).

The funding round will be open for applications from Thursday 8 June 2017 until 5pm Monday 10 July 2017.

The funding announcement, funding agreement and related documents are available on ARENA’s website.

  • For more information visit the ARENA website.

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