Demand Response Strategy Adopted by Australians to Conserve Energy

A couple in Melbourne, endeavors to cut down the cost and usage of their electricity by following few simple steps. They avoid using during peak hours, postponing their tasks, employ alternate methods to get the same effect. As a result, their city is optimally powered and energy conservation is a natural outcome. Them and million others in Australia are participating in a strategic initiative introduced by various energy companies in the country giving a trial run to “demand response”, described as an economic rationing system to save power supply and ensure its even distribution.

Individual power supply companies are introducing demand response where incentives are lowered costs per units or cash credits. The process begins with forewarning customers through a text message about peak times, keeping them updated on the time frames and peak brackets so they can accordingly optimize or minimize their usage. The Australian national electric market is conducting a series of demand response driven trials that are part funded by the Country’s renewable energy agency, ARENA.

While at the end user level this strategy is proving to be highly successful worldwide, with business and different industries too rationing their use. In the Australian energy market, the demand for increasing competition among energy companies is still under debate. An article opened up this hot discussion; whether to or not to introduce new players in the energy market to provide the service.

As per the rules decreed in Australia only energy retailers can offer demand response. There is, however, an insurgence, that is demanding permit to specialist demand response providers to compete with energy retailers in the wholesale market. Where one side claims this will benefit the customers the other contradicts. Will there be upheavals in the market and if these will affect the customers positively, if implemented, remains to be seen.

Demand response has, nevertheless, proven its effectiveness and must be installed and pushed forth in Australia, which is already a little behind in implementing it to its full potential.