We welcome the Australian Energy Market Commission (AEMC)'s decision to continue operating the Wholesale Demand Response Mechanism, given the ongoing net benefits from dispatch cost efficiencies ($4.7 million), reduced spot prices ($219.3 million), and emissions reduction ($38,300) since its implementation in 2021.
This decision will give large energy consumers and demand response providers the certainty they need to increase participation in the mechanism, which we identified as a key barrier to further uptake in discussions while preparing our response to our initial submission.
We also welcome the recommendation that expanding eligibility under the wholesale demand response mechanism rule change request be initiated. This will unlock additional wholesale demand response from large customers with multiple connection points. We urge the AEMC to consider other eligibility criteria as part of this review to ensure that all cost-effective demand response can participate in the mechanism.
The wholesale demand response mechanism allows for a new class of entity to provide demand response products in addition to retailers, one whose incentives are more likely to be aligned with the participating customer than retailers.
