Implementing wholesale demand response: AEMC submisson

by Dan Cass

Australian Energy Market Commission is conducting a Reliability Frameworks Review, which is looking at how to improve reliability in the National Electricity Market.

In our submission The Australia Institute argues that the best market reform under consideration by the Commission is wholesale demand response. Demand response allows energy consumers to reduce or delay their consumption of electricity and sell that conservation into the market.

Wholesale demand response could improve reliability and reduce costs by lowering the price of demand peaks. It may also reduce emissions by displacing fossil fuel generation during peaks of demand.

In 2017 we published a report that explains demand response and how ‘negawatts’ of conserved energy, are the key to delivering for consumers and the grid. 

The Australia Institute also commissioned a national poll that demonstrated how popular demand response is with the public.

Full report