The Australian Renewable Energy Agency and the New South Wales government selected demand response firm EnerNOC to sustain grid reliability during peak periods.According to a statement, EnerNOC has been awarded a three-year demand side management contract to help the state of New South Wales meet its energy woes.
The ENEL Group subsidiary has been tasked with achieving 50MW of demand response capacity from commercial and industrial consumers within the National Electricity Market in New South Wales.
As from this December, the solutions provider and the Australian Energy Market Operator will send to consumers signals calling for reductions in energy consumption during times when the grid is stressed.
Jeff Renaud, vice president of EnerNOC in the Asia-Pacific region, commented: "Demand response is one of the quickest and most cost effective tools the NEM can employ to help avoid the reliability challenges experienced last summer.
"The virtual power plant we're building with the support of ARENA will provide grid services in a quick and reliable way with the benefit of low emissions.
The demand response project is part of plans by the New South Wales government to stabilise the grid awaiting or in the process of expanding renewable energy resources.
The demand response initiative will provide participating consumers with a new revenue stream as they will be awarded for reducing energy consumption during peak times in addition to helping reduce their energy bills.
Utility use of demand response
Earlier on in March, the company was selected by the Taiwan Power Company (Taipower) to provide the utility firm with a solution to achieve 200MW in demand response capacity. The development aims at reducing stress on Taipower’s grid system which is currently witnessing peak load of approximately 36,000 MW.
The demand response contract was agreed upon for implementation over the next two years in partnership with local engineering firm Cheng Long Intelligent Engineering.
The deal formed part of efforts by EnerNOC to expand its footprint in Asia following the signing of demand response contracts with utilities in Korea and Japan.
In early February, Japanese utility Kyushu Electric Power Company had partnered with EnerNOC to implement a demand response initiative.
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