Participation high for Transpower demand response programme

Media release

17 July 2013

Participation high for Transpower’s demand response programme

Transpower announced today that it had received a very positive response to its new demand response programme.

Demand response allows electricity consumers to be paid to reduce their electricity demand temporarily. Transpower’s Demand Response programme will allow better management of situations when electricity demand would otherwise overload the grid ie during a heat wave or cold snap, therefore avoiding the need to invest in costly new lines and assets.

Transpower’s Chief Executive Patrick Strange said that it was pleasing to see so many responses to participate in the new programme.

“The interest in the programme is high, with eleven parties signing up to provide demand response. Positively, the participants vary from commercial businesses, to electricity industry participants, and larger industrials.”

“We also received a greater amount of demand response than expected, with 128 MW offered compared to our target of 100 MW. It was also offered at a lower cost than anticipated, which makes demand response a real, and very exciting opportunity, for New Zealand.”

“We are now formalising arrangements with these participants and, once this completed, we will be able to use the load submitted to manage the grid when required. We are looking forward to working with the participants.”

“We strongly believe that demand response programmes can provide numerous benefits in managing the National Grid going forward. Ultimately, we can reduce the number of physical assets that need to be built in the future, meaning lower costs to the end consumer.”

“Demand response will have a much wider role in making the electricity system more cost-effective for customers in the future and this Transpower programme will be a valuable prototype for this,” he said.

ENDS

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