Demand response applications open for 2016/2017

Media Release

2 November 2016 Demand response applications open for 2016/2017 Transpower announced today the opening of its first of three 2016/17 application rounds for organisations wanting to join its demand response programme.

Demand response allows electricity consumers to respond to a signal to reduce their electricity demand for a period of time, in exchange for a payment. Participation is beneficial to all parties, as participants are not only compensated for their involvement, but can see lower charges long term – while helping manage demand on the grid.

Demand Response Programme Manager Quintin Tahau said that demand response is a tool that not only allows flexibility in the way the grid is operated and used, but could save consumers from having to pay for reconfigured grid assets – not to mention the longer term benefits for electricity consumers across New Zealand for years to come.

“This is the second year of a five year programme of work. There are currently 16 participants in the programme, providing around 100MW of demand response capacity including supermarkets, councils, hospitals, irrigation schemes and battery tech.”

“While we encourage all organisations throughout New Zealand to join the programme, we are particularly interested in growing demand response capacity in South Canterbury and North Otago. We are also looking for agribusiness, battery technology and 3rd party aggregators for residential demand response to apply,” he said.

The focus on South Canterbury stems from the demand that irrigation schemes place on transmission capacity. In this region, where farms continue to be converted from sheep or beef to dairying, there are more consented irrigation projects underway.

Last year, Waihao Downs irrigation scheme became interested in the programme and as a result, the scheme was designed and built with an easy way to participate in demand response, offering a maximum of 3 MW to the grid when needed.

The Waihao Downs system includes at least 4-hours of water storage so it is possible to shut down during an event and still distribute water to farms down the valley without further pumping required.

The current application round closes on the 30th November at 2pm. Further rounds are likely in February and April next year.

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