The Finkel Panel review recommended the AEMC undertake a review to recommend a mechanism that facilitates demand response in the wholesale energy market.
Demand response is our future. It can help keep costs down by avoiding unnecessary investment.
Demand response would also provide a source of reliability to support the national energy guarantee.
We are calling for submissions on alternative ways to facilitate demand response so it can play its part and provide the most benefit at the least cost.
Forecasts of electricity demand help market participants make short-term decisions on how they operate their equipment, and longer-term decisions on investment.
Forecasting is becoming more complex as the market transitions due to factors such as: more distributed energy resources across the community and growing opportunities for demand response; changing weather patterns affecting power usage; and the increasing proportion of more variable renewable generation.
Market participants need more transparency about forecasting methods, assumptions and accuracy so they can make better informed operational decisions.
Increasing transparency on demand forecasts would also help market participants make better decisions about investment needed to meet the national energy guarantee.
We want stakeholders to tell us:
- what information they need for better decision-making
- how industry could expand its contribution to the preparation of system-wide forecasts.