Transpower Awards Demand Side Trial Contracts

Transpower Awards Demand Side Participation Trial Contracts

Transpower has today confirmed the five successful applicants who will act as 'aggregators' for the Demand Side Participation Trial this winter in the upper South Island. As aggregators, they will provide approximately 14 MW of load reduction.

The trial commencement date has also been confirmed as 23 July 2007. Aggregator contracts have been awarded to:

* Buller Networks (lines company)
* Energy Response (independent aggregator)
* Marlborough Lines (lines company)
* Simply Energy (independent aggregator)
* Trustpower (generator/retailer)

The aggregators selected represent a mix of lines companies, a generator/retailer and specialist aggregators with both local and international experience.

Demand Side Participation (DSP) is a service Transpower can use to possibly defer transmission investment in a region, through contracts to reduce peak electricity demand. In essence, Transpower will pay people to reduce their electricity consumption at specific times. Aggregators are the organisations who will engage directly with electricity users to reduce electricity demand at specified times and receive a payment in return.

General Manager Grid Investment Tim George said that now the successful tenderers have been identified, the trial can begin.

"It's been a fairly intensive effort from all parties involved to get this project off the ground for this winter, but we're pleased that we have now contracted for the 14 MW needed, and secured that at a very reasonable price." he said.

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.

This winter, aggregators will be called upon to reduce load with advance warnings of between two and twenty four hours. The reductions will be achieved through a combination of planned load disconnection in the industrial sector and activation of existing standby generation. Payments to aggregators will be calculated based on the level of load reduction delivered during the period of each call.

Further information on the DSP trial is available on www.gridnewzealand.co.nz/n344.html

ENDS

© Scoop Media