Facts about the NEM and DSR

Single objective for our Electricity Market

“To promote efficient investment in, and use of, electricity services for the long term interests of consumers of electricity with respect to price, quality, reliability, safety and security”

Source:  National Electricity Law S.6. - Single objective for the electricity market

The National Electricity Market (NEM) in Australia consists of Generators, transmission companies, Network Service Providers, and Retailers.

The wholesale price changes rapidly in accordance with instant changes in supply and demand.

Price spikes represent less than 1% of electrical energy but cost more than than 20% of wholesale market turnover (The turnover is around AUD$8Bn pa)

Network peaks occure less than 1% of the time but cost 10% of the capital invested.

Reserve Capacity of up to 1500MW is maintained constantly to ensure suppply even though this power is not actually used. This Reserve can be provided by DSR if appropriate systems are put in place.

To remove these market efficiencies requires less than 3% of customer demand (around 1000MW of DSR nationally) for less than 1% of the time for less than 80 hours per year.

Energy Response Pty Ltd is actively involved in seeking out commercially viable solutions for the delivery of DSR. We have relationships with international companies, such as EnerNOC Inc, to maintain our world leadership in this new field.

Energy Response pays consumers (who we call "Providers") to turn off their consumption during periods of high demand, sub-station stress or for reserve capacity. DSR earns revenue for our providers from a range of sources including retailers, networks, independent system operators, generators and through reduced tariffs.