Endorsement for wholesale demand response

A new wholesale demand response mechanism has been introduced into the National Electricity Market. This mechanism is designed to facilitate large customers providing demand response by reducing load or exporting with behind the meter generation. 

To provide this demand response a person needs to be registered with the Australian Energy Market Operator (AEMO) as a demand response service provider (DRSP) and have the load classified as a wholesale demand response unit (WDRU). Where a DRSP wants to aggregate loads they also need AEMO’s approval. AEMO will only approve an aggregation of WDRUs, where they are satisfied that power system security will not be materially affected by the proposed aggregation. In addition to AEMO’s approval Ausgrid’s endorsement is required where the proposed aggregation would: 

• add one or more WDRUs to an aggregated dispatchable unit identifier; and 
• includes WDRUs at or behind a single transmission node with an aggregate maximum responsive component of 5 MW or greater. 

If you are seeking Ausgrid’s endorsement please use Ausgrid’s preliminary enquiry form and select the enquiry type “I have some other connection related enquiry that requires a written response from Ausgrid”.

What information needs to be submitted with the application? 

To ensure your application is processed efficiently you should provide all information required upfront as part of this application and any other information we request you to provide during the assessment process. You should also make yourself available to discuss your application with our staff if requested. 
Your application needs to include the following information: 

1. Letter signed by the customer authorising the DRSP applicant to act on their behalf, or evidence of that by another means. 
2. Number of sites in the proposed aggregation 
3. Combined MRC of the proposed aggregation 
4. Confirmation from DRSP that the proposed operating protocol does not deviate from the customer’s connection agreement  
5. Participating NMI(s) 
6. For each NMI 
   a) Participating asset type(s)
   b) Individual Maximum Response Component
   c) A description of the expected ramp/step-down and ramp/step-up profile of that NMI's MRC when activated, and associated time frames.
      Note that, given the nature of demand response, linear ramps are not expected.
   d) A description of the operating procedure/protocol for activating the demand response 

Fees 

Fees for the application will be charged as a quoted service based on our approved labour rates for ancillary network services. There will be an initial preliminary fee to lodge the enquiry. You will be subsequently asked to sign a short form contract for the provision of this service and you will be billed for the remainder of our fee at the completion of our assessment.  

Endorsement 

Ausgrid will use its best endeavours to provide its endorsement within 25 business days and expects most applications will be processed in that time frame. Some applications may require more detailed assessments which may make it difficult to meet this timeframe. We will let you know as soon as possible if there is a likelihood that this timeframe won’t be met and the reasons for this.  

Once we have finished our assessment we will advise you of the outcome which will be either: 

1. Endorsement without change 
2. Endorsement with conditions 
3. No endorsement with reasons and recommendations. 

If we have not provided our endorsement within 25 business days and you decide to apply to AEMO without it you must first notify us.