Businesses can provide urgently needed flexible demand in NSW to firm the grid
Enel X is the only contracted party to provide 95MW of Demand Response firming capacity in NSW, to help meet the energy security target.
With increasingly challenging grid conditions due to weather conditions, low wind and hydro output, coal outages, and spiking electricity prices, flexible demand is an increasingly critical resource for firming the grid and putting downward pressure on electricity prices for all consumers.
Businesses and organisations in the greater Sydney region can provide flexible demand—the inherent ability to adjust when grid power is used—as part of Enel X’s Virtual Power Plant (VPP) to help ‘firm’ the grid and keep the lights on. Firming capacity helps the grid integrate renewable energy assets safely. Participants are paid both for committing to be available and for reducing grid energy consumption for set periods, generally only a few times a year.
“Western Murray Irrigation has supported the grid across multiple Demand Response programs with Enel X’s VPP since 2020,” said Judith Damiani, Chief Executive of Western Murray Irrigation. “Participation is straightforward and works well for us. An automated system sends a signal to drop demand when the grid is under strain. Our backup generators kick in and keep our water pumps running to provide irrigation to hundreds of wine, grape, and citrus growers, mainly in south-western NSW, a hot and dry region. It helps to keep the lights on for everyone in the broader community, and we are rewarded for participation.”
“As coal generation retires, firming capacity and flexible demand is a key resource to support the grid when the sun isn’t shining, or the wind isn’t blowing,” said Matt Kean, Chair of the Climate Change Authority. “Demand Response is a key way to help the transition and help keep energy prices down.”
Enel X operates the largest demand response VPP, both globally and locally, which intelligently orchestrates businesses to use less energy at key times to help firm the grid. This is the quickest, cheapest and most affordable way to firm renewables on the grid, as it calls on distributed energy resources within the community rather than turning on high emitting gas peaking plants or building new infrastructure.
“We’ve had an incredibly positive response from business in the Greater Sydney region, including the Central Coast, Newcastle and Wollongong,” said Carl Hutchinson, Enel X Australia & New Zealand Country Manager. “Across universities, licensed clubs, metals and steel manufacturers, other industries, farms and vineyards, we are developing tailored energy reduction plans allowing VPP participation to firm the grid and earn revenue equivalent to around 10% savings on annual electricity spend.”