facilitating a more sustainable future
DSR Aggregation in Australia and New Zealand
June 2010
Michael ZammitManaging Director
facilitating a more sustainable future
What is DSR?
► An end user “Response” to:– Extreme wholesale electricity price
– Peaks in Physical network demand
– Reduced reliability or security of supply
► By:– Switching off discretionary loads
– Delaying the use of equipment for a time until the peak has passed
– Switching over their demand to an on-site generator
– Switching over to an alternative fuel source
– Combinations of the above
► Peaks usually appear for only a few hours a year (typically 20-50 hours out of 8,760 hours per year) ie less than 0.1% of the year but cost the Australian economy over $A3bn annually
facilitating a more sustainable future
Who is Energy Response?WA
NEM
NZEM
►Operating since December 2004 ►Australia and New Zealand’s most successful
independent Demand Side Aggregator ►Currently operating in 3 significantly different electricity
markets that broadly represent all major electricity market models
►Offices in Melbourne, Sydney, Perth and Wellington (New Zealand), with a total of 24 employees
►Sourced 1000’s MW of end consumers’ DSR capacity for market opportunities they cannot achieve on their own
facilitating a more sustainable future
Effect of Demand Side ResponseU
SI l
oad
Time
US
I lo
ad
Time
US
I lo
ad
Time
Dem
and
facilitating a more sustainable future
Retailers
Generators
Network Service Providers
Financial & MarketPhysical Network
C C C C C C C C C C
Millions of electricity Customers
Hedgecontracts
Independent Market Operator
Disaggregated Market Model
EnergyDollars
facilitating a more sustainable future
Retailers
Gens
NSPs
Financial & MarketPhysical Network
C C C C C C C C C C
Millions of electricity Customers
Hedgecontracts
Energy ResponseDSM
Facility
IMO DSM
Disaggregated Market Model
Price Volatility
SecurityRisk
NWpeaks
facilitating a more sustainable future
Why End Users Participate
1. Economic Benefits► Payment for participation, lowers cost of electricity
2. Advance warning of high price event or grid issue
3. Community Benefits ► Environmental –less CO2 emissions and water use
► Companies doing “the right thing” (like Earth Hour but companies get paid for participating)
► Raised awareness about energy use
facilitating a more sustainable future
Typical Demand Side Participants
► Scrap Metal Merchants and Recyclers
► Manufacturers – MDF, Cardboard, Flour Mills,
Wallboard, cables, etc
► Councils, Water Utilities, Treatment Plants
► City Buildings, Pubs and Clubs
► Many, many more►Telcos and IT Data Centres
►Cool/Cold Stores
►Quarries, Mines and Sand Plants
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ER’s Core Offerings Matched to Markets
Uses for Aggregated DSR
Aust National Elec. Market
WA Market NZ Market
Reserve Capacity (instead of Reserve Generation)
Not quite right yet
Commercial product
Possible but not simple
Frequency ControlRules are changing
Being encouraged
Commercial Product
Network or Grid Support Contracts
Commercial Product
Showing interest
Commercial Product
Wholesale Price Hedging
Achievable by ER process
Not practical
Gen-Ret vertically integrated
Customer Owned Generation
Achieved by ER process
Showing interest
Showing interest
WA
NEM
NZEM
facilitating a more sustainable future
Over 400MW of Contracted Capacity
Major Programme Energy Response’s Programs
Reserve Capacity (instead of Reserve Generation)
► Reserve Capacity to NEMMCO in the NEM, 2006► Reserve Capacity via Synergy in WA, 2006-07 and 2007-08► Reserve Capacity to IMO in WA, 23MW 2010/11, 73MW from
2011/12-► Broome Reserve Capacity to Horizon Power, 2009
Instantaneous Reserves
► New Zealand SIR market in 2008 – onwards► New Zealand SIR market in 2010 – onwards
Network or Grid Support Contracts
► TransGrid 2008/09► Integral Energy 2006- and Energy Australia 2009-► TransPower (NZ) pilot 2007 & trial 2008
Wholesale Price Hedging
►NEM in 2004 (physical) – onwards►NEM from 2009 - onwards (financial)
Customer Owned Generation
► First Generator of 2x1MW in the NEM registered in 2009► 12MW now registered in May 2010 and another 40MW in the
registration process
WA
NEM
NZEM
facilitating a more sustainable future
Projects and Programs Coming Up
Major Programme Energy Response’s Likely Programs
Reserve Capacity (instead of Reserve Generation)
► Register significantly more capacity in the WEM► Capacity in the NEM (eventually when the rules are
favourable)
Network or Grid Support Contracts
► Network projects in the NEM (across 3 Australian states)► Network projects in NZ► Network projects in the WEM
Instantaneous Reserves
►100MW in New Zealand by December 2010►Developing a Load Following product to match wind output
Wholesale Price Hedging
►Expanding Physical and Financial Hedges in the NEM
Customer Owned Generation
►Expanding Generation program in the NEM►Investigating expansion of NEM program into WEM and NZ
International Expansion
► Investigation of potential markets outside of Australia and New Zealand
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TECHNOLOGIES AND COMMUNICATIONS
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Frequency Control Technology
Over 50 units installed and a further 300 units scheduled for installation by November 2010 to provide +100MW of curtailable load for frequency control
facilitating a more sustainable future
Under Frequency Event ReportingUnder Frequency Event
Load Trip Recorded as Wellington Port Cold Store 22 September
48.6
48.8
49
49.2
49.4
49.6
49.8
50
50.2
50.4
50.6
2007
-09-
22T
05:3
4:18
.74
2007
-09-
22T
05:3
4:19
.22
2007
-09-
22T
05:3
4:19
.70
2007
-09-
22T
05:3
4:20
.18
2007
-09-
22T
05:3
4:20
.66
2007
-09-
22T
05:3
4:21
.14
2007
-09-
22T
05:3
4:21
.62
2007
-09-
22T
05:3
4:22
.10
2007
-09-
22T
05:3
4:22
.58
2007
-09-
22T
05:3
4:23
.06
2007
-09-
22T
05:3
4:23
.54
2007
-09-
22T
05:3
4:24
.02
2007
-09-
22T
05:3
4:24
.50
2007
-09-
22T
05:3
4:24
.98
2007
-09-
22T
05:3
4:25
.46
2007
-09-
22T
05:3
4:25
.95
2007
-09-
22T
05:3
4:26
.43
2007
-09-
22T
05:3
4:26
.92
2007
-09-
22T
05:3
4:27
.41
2007
-09-
22T
05:3
4:27
.90
2007
-09-
22T
05:3
4:28
.38
2007
-09-
22T
05:3
4:28
.87
2007
-09-
22T
05:3
4:29
.35
2007
-09-
22T
05:3
4:29
.84
2007
-09-
22T
05:3
4:30
.32
2007
-09-
22T
05:3
4:30
.80
2007
-09-
22T
05:3
4:31
.28
2007
-09-
22T
05:3
4:31
.77
2007
-09-
22T
05:3
4:32
.24
2007
-09-
22T
05:3
4:32
.72
2007
-09-
22T
05:3
4:33
.20
2007
-09-
22T
05:3
4:33
.68
2007
-09-
22T
05:3
4:34
.16
2007
-09-
22T
05:3
4:34
.63
2007
-09-
22T
05:3
4:35
.11
2007
-09-
22T
05:3
4:35
.59
2007
-09-
22T
05:3
4:36
.07
2007
-09-
22T
05:3
4:36
.54
2007
-09-
22T
05:3
4:37
.02
2007
-09-
22T
05:3
4:37
.50
2007
-09-
22T
05:3
4:37
.97
2007
-09-
22T
05:3
4:38
.45
2007
-09-
22T
05:3
4:38
.93
2007
-09-
22T
05:3
4:39
.41
2007
-09-
22T
05:3
4:39
.89
2007
-09-
22T
05:3
4:40
.36
2007
-09-
22T
05:3
4:40
.84
Time
Hz
Source: Energy Intellect
facilitating a more sustainable future
Innovative Technology Solutions
Source: Energy Intellect
facilitating a more sustainable future
Weather projective tool
Source: Met Service
facilitating a more sustainable future
Innovative In-House Developed Technology Solutions
► Redundant applications (like dispatch and price monitoring) are located on the Google Application Service
► Log-on to these applications is via the web browser on the iPhone or any other suitable mobile device
How price forecasts change
over time
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Real-time Provider Metering
Source: Outpost Central Software
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Sales Force Automation (CRM)
Source: Sugar Software
facilitating a more sustainable future
New Systems To Come
► Settlement and Billing (Gentrack)
► CIS (Gentrack)
► Meter Data Store (Gentrack)
► Automated Dispatch (Whispir)
► DSR SCADA (Vendor not selected)
► FLOWS API (Energy Intellect)
► SME-DRP – Phase 1 (CSIRO)