Demand Response Programme attracts strong interest

17 December 2015

Through its Demand Response Programme, Transpower is able to manage peak demand by contracting with consumers to manage their energy use in return for a payment. This helps to manage load on the grid and potentially defer costly transmission investment especially in the current uncertain demand and supply energy environment.

Demand Response Manager Quintin Tahau said that responses to the most recent request for proposals were promising, and indicated a strong interest from a number of new consumer groups that hadn’t been seen before.

“We have now completed two very successful procurement rounds, and have offered around 18 contracts to a range of respondents,” he said.

“The mix of alternative power sources in the programme is now very diverse including battery technology, solar cells, renewable generation, and backup diesel generators. The range of electricity consumers involved is also varied including public and private hospitals, a council, electricity lines companies, and residential users.”

“Strong interest has also been shown by irrigation and farming communities, and we will work further with these groups and other industries ahead of the next procurement round in February.”

“Demand response is a great opportunity, especially for everyday electricity users. Essentially, you are rewarded for being flexible in how and when you’re using electricity. It represents choice for the consumer and also enables Transpower as owner and operator of the grid to deliver flexible, cost-effective energy solutions for all New Zealanders.”

To find out more about Transpower’s Demand Response Programme, please visit www.transpower.co.nz/demandresponse

For further information, please contact:  
Rebecca Wilson, Corporate Communications Manager, 04 590 6695 or 021 578 608

Quick facts:

  • In the most recent programme, respondents offering between 2 kW to 6.5 MW were accepted. Two kW would be equivalent to a standard residential heat pump and 6.5 MW would power 300-500 homes during the middle of winter.
  • In total, 26 proposals were received, reaching from the Far North to Otago.
  • Applicants included hospitals (public and private), supermarkets, battery users, solar cells, renewable generation, and standby diesel generation.
  • Transpower has contracted demand response comprising a significant volume towards targets set for different regions.
  • The next procurement round will extend from 8 to 27 February 2016 and will continue to focus on specific areas like Oamaru and Timaru, and the upper North Island (north of Huntly).
  • A particular focus of the upcoming procurement round is encouraging participation from the agribusiness sector.