Demand response projects announced for NSW, Vic and SA

SPASA Australia

Friday, 20 October, 2017

Pilot projects for power demand response have been announced for Victoria, New South Wales and South Australia. The three-year trial, funded by the NSW Government, features a range of creative solutions to address the challenge of power demand spiking at peak times — an issue that saw a series blackouts and near misses across the three states last summer.

The trial includes 10 projects that aim to change behaviour and shift energy use, with the aim of freeing up 20 MW of capacity by 2020.

In short, demand response is based on a simple principle: why build costly electricity generating and network infrastructure in order to meet peak demand levels that happen just a few times each year?

The government is asking the question: wouldn’t it be smarter to take steps to strategically decrease discretionary energy use during those times in order to remove stress from the grid?

Demand response: how it works.

One solution to reducing energy use is to pay energy users an incentive to turn off equipment like air conditioners and pool pumps during times of peak demand.

While this is one way to reduce energy use, SPASA Australia is objecting to the use of demand response for pool pumps, due to the risk of water-related bacteria proliferating, as well as commercial impacts to public pools, aquatic facilities and broader residential pool and spa consequences.

SPASA submitted a paper in September 2017, responding to the Australian Energy Regulator (AER) Consultation Paper on Demand Management Incentive Scheme. A copy of the SPASA submission is available here.

More information about the projects, and what they mean for consumers and business, is available here. To learn more about Demand Response, visit the ARENA (Australian Renewable Energy Agency) website:

What is demand response? from ARENA on Vimeo.

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