Demand Side Participation Trial Gets Green Light

2 July 2007

Demand Side Participation Trial Gets Green Light

The Electricity Commission has approved funding for Transpower’s planned Demand Side Participation trial in the upper South Island. Details are available on its website www.electricitycommission.govt.nz.

Demand Side Participation (DSP) is one of the means by which Transpower may be able to defer transmission investment in a region, or manage risks to security of the power system, through contracting to reduce peak electricity demand. In essence, Transpower is proposing to pay people to reduce their electrical consumption at specific times of day. This will be done by contracting with “aggregators” – organisations who could engage directly with electricity users to reduce electricity demand at specified times and receive a payment in return.

The objective of the trial is to obtain information on the feasibility and operational aspects of using DSP when needed to reduce peak loads on the grid.

Transpower began the process for the trial in May, submitting an application for approval of the trial expenditure to the Electricity Commission, releasing an Expressions of Interest document, holding a workshop for interested parties to go through the details, and issuing a Request for Proposal to interested parties.

General Manager Grid Investment Tim George said that Transpower has been encouraged by the level of response from potential aggregators especially in light of the short time frame necessary to allow the trial to be implemented this winter.

“We’ve received responses from eight parties representing a mix of lines companies, generators, retailers, and specialist aggregators. They offered a wide range of load reduction options and we’re happy that the total capacity offered is sufficient for a useful trial. With the Electricity Commission funding approval we can now move swiftly to get this groundbreaking initiative underway.”

Transpower is evaluating the proposals received with a view to negotiating appropriate commercial terms so that the trial can run during July and August.

Further information on DSP is available on www.gridnewzealand.co.nz.

ENDS

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