market. National reform to better integrate and value FD capability for a more efficient electricity industry is a work in progress.
What and how much flexible demand is viable and untapped? Excluding traditional load control of residential hot water, the main existing application of FD is in the RERT scheme. Over the last two years, 1422 MW of FD was contracted, delivering 5223 MWh of FD at a benefit-tocost ratio of almost 2:1. While robust information is not available, participation of loads in the wholesale electricity market (either directly or through wholesale market exposure in retail contracts) appears limited. A literature review on the techno-economic viability of a range of sources of FD identified a wide variety of relatively untapped, cost-effective FD technologies that could be deployed in the Australian electricity system. There are particularly large FD opportunities for technologies and businesses whose facilities and operations can provide energy storage. Sectors and loads were ranked for suitability based on a qualitative HUFF matrix scoring framework, prioritising those FD sources that are Homogeneous, Ubiquitous, Feasible (techno-economic) and Feasible (fit well with industry practices and priorities). The analysis found that the most prospective technologies and sectors are: • • •
commercial buildings, with a focus on Heating, Ventilation and Air Conditioning (HVAC) water/agriculture, with a focus on water pumping food and beverage manufacturing, with a focus on refrigeration and cold storage
Preliminary modelling identified the indicative scale of untapped FD resources. The potential of FD from airconditioning was determined by top-down disaggregation of the temperature-dependent load on electricity networks. The potential for (i) completely switching off air-conditioning (Shed) as an emergency measure is distinguished from (ii) reducing air conditioning by nudging thermostat settings up or down (Shift). The latter is more suitable for regular flexing in response to price signals. An interactive Tableau visualisation tool is available to identify the quantity, location and timing of available FD from air conditioning from both commercial and residential buildings (Air conditioning demand response atlas v1.04). The FD potential of domestic hot water and swimming pool pumps was determined by bottom-up stock modelling of appliances in homes. Similarly, an interactive Tableau visualisation tool can be found at Residential end use demand viewer v0.1. The potential of industrial FD was estimated by assessing the load flexibility exhibited by over 200 known market-exposed companies. This was taken as being representative of their respective industrial sector, allowing for extrapolation across each sector. The estimated quantity of FD available in the built environment (commercial and residential) and in industrial applications is summarised below:
2
Flexible demand and demand control B4 Opportunity Assessment
