Demand Response Programme
Demand Response (DR) enables contestable consumers to reduce their electricity demand voluntarily when wholesale electricity prices are high, in exchange for a share in the system-wide benefits. Such reductions in electricity demand typically help to reduce wholesale electricity prices.
Benefits of the Demand Response Programme
The DR programme brings about several benefits. These include:
- Providing an option for consumers to be rewarded for participating in the electricity market, through demand side bidding and managing their electricity usage in response to price signals. The consumer receives a payment when it is activated in response to the price signal. This is aligned with EMA’s overall objective of promoting greater consumer choice as part of the competitive market framework.
- Reducing the wholesale electricity prices during peak periods as more expensive generation units need not be scheduled to run.
- Promoting more efficient investments as DR is expected to reduce ‘peaks’ in electricity consumption where prices are typically higher. In the long term, this reduces the need to invest in expensive generation units that are only run infrequently to meet ‘peak’ demand.
- Providing an additional resource to improve system reliability as consumers reduce consumption in response to high prices during periods when supply capacity is tight (e.g. due to unplanned outages).
If you are a contestable consumer and can offer to reduce your electricity consumption, you can participate in the DR programme through your electricity retailer or a Demand Response Aggregator.
For more information on the DR programme and what has changed under the new Sandbox framework, please refer to the factsheet.
For enquiries on the DR programme, please complete this form and we will get back to you.
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