Contractors and Industry
Replacement Needs Project
Background
We are pleased to announce the launch of our Demand Management for Replacement Needs project which is a trial funded by the Australian Energy Regulator (AER). Historically, demand management solutions were applied to resolving constraints in the network to defer demand-driven network investment. This would typically require demand reductions for only a few hours a day on very hot summer or very cold winter peak days. However the network investment landscape is changing with more than 80% of Ausgrid's capital investment expenditure over the next 5-10 years relating to the retirement or replacement of aged network assets. As part of this trial we will partner with market providers to explore innovative techniques to help defer this type of network investment need and lower costs for all consumers.Purpose of the project
The purpose of this project is to investigate the reliability and cost effectiveness of extending the life of ageing network assets by reducing demand for electricity from customers on our network.This will be done in two ways – by offering incentives to customers to reduce their load on a permanent basis by using solar power or other energy efficient investments - and by studying customer responses to see how temporary demand reductions can be achieved.
Project update
A request for information document was published in late 2017 which invited market providers to respond. We received 16 submissions for the Permanent Demand Reduction Incentives Program, of which a shortlist of four applicants were selected to progress to Stage 2 of our assessment. We will announce our final decision soon. In addition to the funding provided as part of the DMIA, we are pleased to announce our partnership with the City of Sydney Council, who has granted $750,000 to the incentive program. The additional funding allows Ausgrid to expand the footprint for the program. Full details about the project are provided in the Demand Management for Replacement Needs Summary.You can read the recent joint media release with Sydney's Lord Mayor, Clover Moore and Ausgrid Chief Executive Officer, Richard Gross, discussing the benefits arising from the project.