Toolbox Entry: AEMO's wholesale demand response mechanism
Last edited on 27/11/2022 by Hector Alfaro
(Date format: DD/MM/YYYY)
Australian Energy Market Operator (AEMO)
Type of Entry
Market-based and Tariff-based Solutions
- Demand Response
Which of the above categories best describe the material
Market-based and tariff-based solutions
Geographical Scope of the Publication
AEMO is working with the industry to implement a Wholesale Demand Response (WDR) mechanism in the National Electricity Market (NEM). The WDR mechanism allows demand side (or consumer) participation in the wholesale electricity market at any time, however, most likely at times of high electricity prices and electricity supply scarcity. ‘Demand Response Service Providers’ (DRSP) classify and aggregate the demand response capability of large market loads for dispatch through the NEM’s standard bidding and scheduling processes. The DRSP receive payment for the dispatched response, measured in Mega-Watt hours (MWh) against a baseline estimate, at the electricity spot price.
In the webpage, the latest information on the mechanism can be found, alomg with annual reports.