Get rewarded for how you use power this summer

Summer is fast approaching which means that your business can get involved in demand response programs and be rewarded for how you use power this summer.

Demand response has become a hot topic in recent years.

Last year the Australian Renewable Energy Agency (ARENA) and the Australian Energy Market Operator (AEMO) launched a joint initiative to ensure stable energy supply during times in peak demand of which, Flow Power is a participant in the program in NSW.

Demand response is a simple idea ARENA explained it best when Adam Morton wrote, imagine you have turned up at the airport, e-ticket in hand, only to be told your plane is full.

READ: Combine demand response with PPAs for maximum saving, says research

There are no other flights immediately available, but the airline has a solution – if you can volunteer to miss the flight and wait for a later one you will be compensated through an upgrade, a voucher, or maybe a free night in a good hotel.

At least from one perspective you’re better off.

Inconvenienced passengers may grumble, but they also mostly recognise that supply of any good is not infinite.

And if they lose out – by choice, hopefully – they win in another way.

A similar idea is behind demand response.

Demand response is simply businesses reducing the power they draw from the grid during times when demand for power is greater than supply.

Just as it would make little sense for an airline to put on another flight for a handful of passengers, there is not much economic sense in building another power plant to service a tiny number of consumers at the few times a year when electricity use peaks.

What if, instead, consumers were offered an incentive to cut use during extreme circumstances?

The power market is a balance between supply and demand, when demand is greater than supply you can support the market and be rewarded by lower average power costs or payments for your business.

Market signals such as real time electricity prices and short-term network constraints indicate when demand response is likely to be required.

Small changes to your operations can make a big difference to your power bill and the reliability of the system.

From modelling we did on 670 Australian business last financial year, at the start of 2018, demand response could have cut South Australia’s power price by 2.7 c/kWh for all Australians.

It can include shutdown of non-essential plant, use of onsite generation or energy storage such as batteries or load shifting.

Businesses generally have more flexibility to shift demand than they realise, and new technologies are making it cheaper and easier to do so.

Getting on with the job We know you have a business to run so by signing up to demand response with us you let our experts monitor the market for you.

You receive notifications when the time comes to respond via email and text message.

In addition, for businesses who want greater control over their power we have the kWatch Intelligent Controller.

When installed on your site, the controller gives you more insight into your business, alerts and can integrate with your operation.

The controller integrates with your energy intensive equipment, so you can respond within minutes to market signals.

For more than 10 years, we have been working with Australian businesses to ensure they are rewarded for supporting the power market with demand response.

We can get you involved in a range of programs including RERT (VIC and SA), and ARENA (NSW).

To see what it’s like to participate in demand response and explore how it would work for your business, join our webinar on November 13.

Data reveals how businesses can reduce energy costs for all Australians

Flow Power modelled the energy spend of 670 businesses and what could have happened had they all been purchasing wholesale power last financial year.

It would only take 670 businesses to drive investment in 1845 megawatts of renewable generation.

If 670 businesses had purchased wholesale power last financial year, they could have saved up to $97M in total.

This figure more than doubles when businesses sign onto corporate renewable PPAs, which could have delivered savings of up to $195M in total.

READ: Combine demand response with PPAs for maximum saving, says research

At the start of 2018, demand response could have cut South Australia’s power prices by 2.7c/kWh.

Businesses forgoing fixed-rate contracts for wholesale prices could expect significant price reductions.

Flow Power directors and senior business managers unpack the numbers in a webinar on the 9th of October.

Join the webinar here.

Better Power Businesses that are tapped into the wholesale power market are more in tune with its highs and lows, and are best placed to respond to peaks in demand and soaring prices.

These businesses have the power to keep power prices down and the lights on for everyone – even during periods when demand is at its peak.

In the first quarter of 2018, South Australia’s business could have reduced energy prices by 2.3c/kWh for the entire state, simply by choosing to power down during peak price events.

Drive Investment Businesses have a critical role to play in the investment in Australia’s growing pipeline of renewable energy projects.

If 670 medium and large-scale businesses across Australia made the decision to contract renewable energy through corporate renewable Power Purchase Agreements (PPAs), this would drive investment in more than 1845 MW of renewable generation.

Lower power bills Businesses sign up to buy a portion of the output of renewable generators for periods of up to 10 years through corporate PPAs pay significantly lower prices and benefit from price certainty for the life of their contracts.

If the 670 businesses analysed by Flow Power signed up to renewable corporate PPAs, they would have saved up to $195 million in total on energy costs in the last financial year.

Without PPAs, choosing to buy wholesale power still delivered significant savings of up to $97 million in total. Matthew van der Linden, managing director of flow power, said Flow Power knows that the traditional fixed-rate model is no longer meeting Australian businesses’ needs for cheaper, more transparent power solutions.

“The benefit of connecting businesses to the true signals of the energy market, either through PPAs or wholesale power, is twofold.

We see businesses save on what can be their most costly expenditure – energy – as well as everyday Australians benefitting from greater investment in renewable generation and lower energy costs delivered by wholesale demand response,” he said.

“This can be achieved without new policy or government intervention, all it would take is businesses choosing to take more control over their power.” said van der Linden.

David Evans and Nathan Epp from Flow Power will discuss the numbers at the webinar on the 9th of October.

Register today.