Electricity demand response
We are working to promote an active demand response market in New Zealand. Demand response involves shifting or reducing electricity use to relieve pressure at peak demand times. It’s estimated that national peak demand could be reduced by 6% to 9% if businesses shifted or reduced electricity use at particular times.
Benefits of demand response
By reducing peak loads, demand response strategies can:
- reduce the risk of supply shortages
- stabilise prices when supply is constrained
- minimise the risk of shutdowns and layoffs due to high spot prices and pressured networks
- reduce charges for energy losses incurred on the national grid and local networks
- avoid or defer the need for buying new infrastructure to meet increasing demand
- make transmission networks more stable, improving security and continuity of supply.
Demand response options
Pick a demand response option to suit the type and size of your operation.
- Ripple control – A contract with an electricity supplier that allows certain loads to be switched off by a ‘ripple’ signal.
- Call options – Users are reimbursed for reducing load or generating their own power when requested.
- Demand exchanges – Users sell back portions of their load to retailers or line companies, usually through a website or other electronic system.
- Spot market buying – Larger energy users can buy or sell energy at time of use (TOU) rates, to make the most of price fluctuations.
- Contract for difference (CFD) – Users on fixed quantity contracts can choose to sell part of their energy at spot prices, potentially at a profit, then reduce their load.
More information
To find out more about your demand response options, contact EECA on 0800 358 676.. You could also talk to an independent energy management consultant. Check out our Find an Expert directory (found on the main navigation of this site) to search for consultants in your area.
