WDR Demand Response Service Providers

This section assists demand response service providers (DRSPs) in identifying the steps they need to take to participate in WDR. It also provides links to the key information that supports WDR participation. 

The information provided by AEMO on WDR is general and may not be appropriate for any participant’s particular situation or market activities. Please also refer to AEMO’s privacy and legal notices.

WDR enables customers to sell demand response in the wholesale market either directly or through specialist aggregators. Customers wishing to participate in the WDR mechanism (WDRM) need to decide whether to become a “demand response service provider” (DRSP) or engage a DRSP to act in the NEM on their behalf. 

DRSPs classify and aggregate the demand response capability of large market loads (WDRUs) for dispatch through the NEM’s standard bidding and scheduling processes. 

The DRSP will receive payment for dispatched response, measured in mega-watt hours (MWh) against a baseline estimate, at the electricity spot price. 

From October 2021 DRSPs will also be the category that provides ancillary service load, replacing the market ancillary service provider category.

The diagram shows the high-level steps a DRSP needs to take to participate in WDR.

Assess

This section provides a non-exhaustive list of eligibility and commercial factors that prospective DRSPs may consider when deciding whether to become a WDR participant.

Eligibility considerations

  • What is a wholesale demand response unit (WDRU)?

    A Wholesale Demand Response Unit (WDRU) is a single or an aggregation of demand-responsive, controllable market load connection point(s) within a NEM region.  WDRUs need to be identified as eligible (a ""qualifying load""), classified, scheduled, and dispatched.

  • What loads are eligible to participate in WDR?

    Eligibility to participate in WDR is dependent on a load's size and its predictability: 

    • Broadly, only "large customer" loads are eligible to participate in WDR, however aggregated "small customer" loads may be eligible in certain circumstances (see next FAQ). The thresholds for what constitutes a "large customer" is different from state to state, as set out in the table. 
    • Loads also need to be sufficiently predictable so a baseline can be established. WDR settlement and dispatch performance are both measured against a load's baseline.

    Jurisdiction

    Definition of Large business customer (by annual electricity consumption)

    Reference

    QLD

    >= 100MWh

    National Energy Retail Law (Queensland) Regulation 2014 - Schedule 4
    Same meaning as National Energy Retail Law

    NSW

    >= 100MWh

    National Energy Retail Law (Adoption) Regulation 2013

    ACT

    >= 100MWh

    Independent Competition and Regulatory Commission (Price Direction for the Supply of Electricity to Certain Small Customers) Terms of Reference Determination 2014
    Same meaning as National Energy Retail Law

    VIC

    >= 160MWh

    Victorian Energy Retail Code

    SA

    >= 160MWh

    National Energy Retail Law (Local Provisions) Regulations 2013 – Reg 5

    TAS

    >= 150MWh

    National Energy Retail Law (Tasmania) Regulations 2012

  • What loads can be aggregated under the WDR mechanism?

    Load types eligible for WDRU aggregation are set out in the table. Note that aggregations may only comprise of WDRUs that are located in the same NEM region.

    Load type

    Classify/ aggregate as WDRU?

    Comment

    Small customer NMI

    No

    NER 2.3.6 (m)(1)(iii)

    Small customer NMIs are generally not able to be classified or aggregated as WDRUs.

    Aggregated small business customer NMIs

    Yes

    NER 2.3.6 (m)(2)(ii)

    • Small customer NMIs can only be classified and aggregated as WDRUs where a retail customer who is a business customer under the NERL has a NERR 5(2)(a) agreement with its retailer to aggregate its premise loads. This has the effect of its total load corresponding to that of a large customer.
    • As part of the application to classify/aggregate these small NMIs as WDRUs, AEMO will require a declaration confirming that a NERR 5(2)(a) agreement applies to them.

    (NERR jurisdictions only: NERR do not apply in Victoria)

    Large customer NMI

    Yes

    NER 2.3.6 (m)

    Large customer NMIs can be classified and aggregated as WDRUs.

  • What is the minimum load I can have for WDR?

    It depends. There is no lower size limit for individual loads within a WDR aggregation, so long as they are classed as ‘large’ customers (jurisdiction dependent).  However, the dispatchable unit (either a single NMI or aggregation) must be a total of 1MW. This is because the dispatch engine (NEMDE) operates in integers.

  • Can I participate in WDR if my load can't respond within a 5-minute dispatch interval?

    Yes. There are mechanisms that can be used where facilities (generators or loads) are not sufficiently flexible to respond to 5-minute dispatch timeframes, including:

    • Ramp rates
    • Fast start inflexibility profile (FSIP) bidding 
    • Other bidding strategies, as determined by the DRSP
  • I am commissioning a new facility that will be suitable for WDR. Will it be eligible for WDR?

    The AEMC determined that eligibility to participate in WDR is dependent on a load's size and its predictability:

    • Broadly, only "large customer" loads are eligible to participate in WDR, however aggregated "small customer" loads may be eligible in certain circumstances. The thresholds for what constitutes a "large customer" is different from state to state.
    • Loads also need to be sufficiently predictable so a baseline can be established. WDR settlement and dispatch performance are both measured against a load's baseline.

    Assuming that the new facility is a large customer load (or an eligible small customer load), it would be ineligible for WDR until its baseline eligibility could be established.  This would require about 10 weeks of data that reflected standard operating conditions for the facility.

  • Does "behind the meter" generation count as wholesale demand response?

    The WDR mechanism in the National Electricity Rules (NER) allows for WDR to be provided by behind-the-meter generation. The Australian Energy Market Commission’s WDR determination and rule was explicit that reduction in load or increase of export at a market load connection point is eligible to provide WDR.  

    Note that the installation of behind-the-meter generation is subject to the connection requirements of the relevant distribution network service provider (DNSP) and, where applicable, the NEM registration requirements (see details regarding registration and exemptions).

  • How are embedded networks affected by the WDR mechanism?

    NMIs on embedded networks can generally participate in WDR so long as they meet all the WDR requirements.  The WDR Rule (2.3.6(m)(1)) provides that embedded network loads qualify for WDR where: 

    (i)  the load comprises... a parent connection point in respect of all its associated child connection points that are not market connection points;
    (ii) if the connection point is a child connection point, it is also a market connection point.

Cost/benefit considerations

Baselining considerations

  • What are baselines and why are they used for WDR?

    A baseline is the counterfactual energy amount for the WDRU that is dispatched for demand response. Generally, baselines represent an estimate of the consumption per trading interval during a day, based on a history of like days in the near past.

    The demand response settlement process requires the establishment of a baseline for each WDRU. Under the NER, AEMO must develop:

    • One or more baseline methodologies (BLMs)
    • Related baseline settings
    • Baseline methodology metrics for eligibility/compliance testing 
  • How are baseline methodologies developed and applied?

    AEMO's approach is to develop one baseline methodology for the start of WDR that will include weekday/weekend options. This approach:

    • Minimises cost and time to market
    • Does not preclude the development of further baseline methodologies in the future
    • Aims to balance accuracy, simplicity, and integrity.

    The process for development of new baseline methodologies will be set out in the WDR Guidelines

    For further information see the Baseline Eligibility Compliance and Metrics Policy (under development). This document establishes the methodology by which AEMO will determine baseline eligibility and compliance under the WDR mechanism and sets out the thresholds for baseline compliance metrics.

  • There are many phrases describing different aspects of baselines. What do these all mean?

    Term

    Description

    Baseline methodology

    Methodology to determine a baseline for a WDRU.

    Baseline settings

    Set parameters that allow the BLM to be applied to different WDRUs (i.e. qualifying days, baseline window, adjustment window, weekday/weekend etc).

    Baseline methodology metrics

    Parameters (i.e. accuracy/bias) used to assess a WDRU baseline for eligibility and compliance.

    Accuracy

    How closely a baseline methodology predicts actual loads in the sample.

    Bias

    The systematic tendency of a baseline methodology to over- or under-predict actual loads.

  • The baselining eligibility approach means some of my loads (especially temperature-dependent loads) won't be able to participate in WDR. Why isn't the WDR mechanism available for all loads?

    WDR is one option in a suite of demand response choices and was not designed to accommodate every load. The AEMC determined that eligibility to participate in WDR is dependent on a load's size and its predictability:

    • Broadly, only "large customer" loads are eligible to participate in WDR, however aggregated "small customer" loads may be eligible in certain circumstances. The thresholds for what constitutes a "large customer" is different from state to state.
    • Loads also need to be sufficiently predictable so a baseline can be established. WDR settlement and dispatch performance are both measured against a load's baseline.

    The WDR Rule reflects this policy approach and AEMO's implementation is aligned with the NER.

  • Why is AEMO only developing one baseline methodology?

    As outlined in AEMO's WDR high level design and discussed with stakeholders, AEMO's approach is to develop one baseline methodology (BM) for the start of WDR that will include business day / non-business day options. 

    The BM will not suit every participant perfectly, however this approach:

    • Minimises cost and time to market
    • Does not preclude the development of further BMs in the future
    • Aims to balance accuracy, simplicity, and integrity.

    WDR was designed to minimise the costs and complexity of implementation and enable it to start as soon as possible. AEMO’s approach to implementation reflects the AEMC’s policy intent that WDR will provide some customers with greater opportunity to participate in central dispatch in the near term.

    AEMO anticipates that its assessment of the incremental benefits of new BMs will require experience with the operation of WDR and the performance of an existing BM. It therefore expects that assessments of new BMs will benefit from lessons learned from the first summer of operation of WDR (2021-22).

     

Participation requirements/costs considerations

  • What is the settlement mechanism for WDR?

    The FRMP (retailer) at the WDRU funds the demand response. During a demand response event, the retailer will be settled with respect to both the energy market settlements (based on metering data) and the baseline energy level. 

    To ensure that the retailer is compensated following a demand response event, a wholesale demand regional reimbursement rate (WDRRR) will be calculated and charged to the DRSP based on the energy difference between the baseline and the metered energy. This amount will be paid to the retailer. The WDRRR is intended to reflect the cost of the electricity the FRMP is liable to purchase in the wholesale market which is not consumed by, and therefore not charged to, the customer.

    Further information

    Section 2.2.2, WDR High level Design

  • When do I get paid for the demand response I provide?

    Payment is in accordance with NEM settlement time frames. See the NEM settlement calendars and related settlements information for details.

  • What systems do I need to participate in WDR?

    The WDR mechanism has been intentionally designed to schedule demand side facilities into the NEM dispatch processes.  This service will be provided by a market participant, known as a demand response service provider (DRSP), that will require:

    • knowledge of the NEM market and systems 
    • operational sophistication to manage WDR units according to the relevant rules, policies and procedures.

    Every business is different and needs to conduct its own analysis on the costs/benefits of WDR participation vs other types of demand response.  For WDRU bidding and dispatch, participants can either:  

    • Become a DRSP and set up the required systems to bid and receive dispatch instructions, or  
    • Contract a 3rd party DRSP to manage WDR bidding and/or dispatch on their behalf.

    For an overarching view of how market participants interface with electricity market systems, see the Participant IT interfaces web page, particularly: 

    system requirements for DRSPs are set out in the table. 

     

    Description

    MarketNet

    Any access to AEMO’s market systems requires a data network connection to MarketNet. This is the first step in implementing your access to AEMO’s market systems.

    MSATS

    MSATS is used for NEM energy settlements by determining energy flows from generators and retailers. MSATS does not determine the cost of energy.
    MSATS capability is required for B2M (business to market/AEMO) and potentially B2B communications for the NMIs a DRSP is associated with.

    B2B e-hub

    B2B communications in the NEM are mainly administered through the B2B e-hub (an area of MSATS functionality). The B2B e-hub enables information sharing between the different parties who have an interest in a single customer supply point.

    It is expected that DRSPs will use the following B2B transaction types:

    ·       Receive meter data: Enables DRSP to receive meter data from the MDP/s

    ·       Provide meter data (PMD): Enables DRSP to request meter data from the MDP/s

    ·       Verify meter data (VMD): Enables DRSP to request that meter data is verified by the MDP/s

    Using the B2B e-hub is not mandatory but it is the standard industry form of communication. An alternative is using a bilateral agreement between participants.
    Note that participants need to be accredited before they can transact via the B2B e-hub.  This can be done as part of DRSP registration.

    Wholesale IT systems (EMMS)

    The Energy Market Management System (EMMS) is used to determine the amount and cost of energy to be dispatched. EMMS Markets Portal Applications relevant to DRSPs include:
    • Bid Submissions (bidding)
    • Settlements Direct
    • NEM Prudential Dashboard
    • NEM Prudential Forecast
    • Credit Support
    • Market Info

    Data Interchange

    Data interchange (DI) is a set of cooperating applications to replicate data between AEMO’s Wholesale Market Systems and registered participants' RDBMS conforming to the Electricity and/or Gas Data Models.
    AEMO recommends participants use the Data Interchange software (supplied by AEMO) to automate receiving and storage of the subscribed reports from Data Subscriptions.

    Austraclear

    AEMO acts as a clearing house for a number of energy markets, and facilitates the transfer of money between AEMO and participants. This market settlement function typically involves participants who receive goods and services making payment to AEMO, and AEMO subsequently making payment to participants who provide goods and services.
    To ensure the timely, irrevocable and transparent management of high value payments, AEMO uses the Austraclear service, provided by the Australian Securities Exchange (ASX).  Participants intending to operate in any of the energy markets are required to apply to the ASX for registration to Austraclear.

    Portfolio management system (under development)

    The new Portfolio Management System will allow DRSPs to manage their portfolio and submit new classification and aggregation requests.
    The Portfolio Management System is under development and its external-facing portal is expected to be operational by October 2021. AEMO will hold a workshop for participants in September 2021 on how to use the portal.
    Note that initial registration, classification and aggregation will be by application to AEMO's registration team from late June 2021. However once registered, the new Portfolio Management System will allow DRSPs to manage their portfolio and submit new classification and aggregation requests.

    Demand side participation portal

    AEMO has developed a data portal for participants (including DRSPs) to submit their Demand Side Participation (DSP) information in accordance with the Demand Side Participation Information Guidelines.

    The DSP data portal sits on MarketNet.

     

     

     

     

     

     

  • What is the "Portfolio Management System"?

    The Portfolio Management System is for DRSPs to:

    • View their portfolio of WDRUs & ASLs
    • Submit new application requests for AEMO's approval such as:
    • Classify new NMIs
    • Declassify existing NMIs
    • Aggregate
    • Disaggregate
    • Update baseline methodologies and parameters
    • Request to reinstate a NMI following suspension due to non-compliance.
    • Continue application(s) from draft
    • View the status of submitted requests
    • Request to withdraw submitted requests
    • Self-assess baselines associated to a NMI or by a Portfolio
    • Identify their NMI as unavailable due to operational issues.

    The Portfolio Management System is under development and its external-facing portal is expected to be operational by October 2021. AEMO will hold a workshop for participants in September 2021 on how to use the portal. 

    Note that initial registration, classification and aggregation will be by application to AEMO's registration team from late June 2021. However once registered, the new Portfolio Management System will allow DRSPs to manage their portfolio and submit new classification and aggregation requests.

  • Does my WDRU need telemetry?

    Section 3 of the WDR Guidelines describes the circumstances in which real-time telemetry must be provided from WDRUs. Please note that telemetry is only provided at the DUID level, noting that the DUID may be an aggregation of multiple WDRUs.

  • What's the fee for registering as a DRSP?

    The best indicator of DRSP registration fees is the current fee for a Market Ancillary Service Provider. However, the actual DRSP registration fee amount (and any other applicable participant fee) will be determined on an annual basis via the AEMO budgeting process. 

    In parallel, AEMO is consulting on the structure of electricity participant fees to apply from 1 July 2021. Relevant to WDR, this consultation considers the structure of WDRM establishment costs, DER integration costs and DRSP registration fees.

  • Why do WDRUs need to have 5-minute metering?

    Five-minute metering is necessary for settlement and dispatch conformance monitoring. Five-minute data are required because settlement and dispatch are 5-minute processes.  Therefore, baselines and demand response must also be calculated and assessed in 5-minute intervals against actual 5-minute consumption data.

  • Why do DRSPs have to provide credit support when they are being paid to reduce demand and not buying energy?

    The WDR mechanism allows customers to gain access to NEM spot prices when they are dispatched for demand response. In developing the WDR, the AEMC decided that this exposure should be bidirectional i.e. that WDR settlement quantities should not be floored at zero. Consequently, the NER settlement equations will result in ""negative"" settlement quantities where:

    • - a WDR NMI is dispatched and 
    • - its metered consumption is above its baseline quantity or a positive demand response is provided at a negative price

    AEMO has no discretion to adjust or deviate from these settlement equations. The requirement for credit support directly results from this risk of negative settlement.

    It is important to note that no WDR settlement occurs if there is no dispatch instruction. Dispatch is based on bids, and DRSPs can bid their capacity to reflect their availability and the pool price at which they are willing to provide WDR.

Prepare

Registration, classification and aggregation

  • When can I start participating in WDR?

    To participate in WDR you must be a registered demand response service provider (DRSP). You can begin the DRSP registration and load classification process in late June 2021. The WDR mechanism itself commences in the NEM on 24 October 2021. A DRSP can offer wholesale demand response into the NEM at any time from this date.  

    For further information, see AEMO's WDR program implementation timeline

  • What's the fee for registering as a DRSP?

    The best indicator of DRSP registration fees is the current fee for a Market Ancillary Service Provider. However, the actual DRSP registration fee amount (and any other applicable participant fee) will be determined on an annual basis via the AEMO budgeting process. 

    In parallel, AEMO is consulting on the structure of electricity participant fees to apply from 1 July 2021. Relevant to WDR, this consultation considers the structure of WDRM establishment costs, DER integration costs and DRSP registration fees.

  • How and when do I register to become a DRSP?

    AEMO expects that DRSP registrations will open in June 2021 and intends to hold an information session in May 2021 to prepare businesses for the registration, classification and aggregation processes. Initial registration, classification and aggregation will be by application to AEMO's registration team. However once registered, the new Portfolio Management System (under development) will allow DRSPs to manage their portfolio and submit new classification and aggregation requests.

    From June 2021, you may apply to register as a DRSP once you are ready to apply to classify one or more loads as WDRUs or ancillary service loads (ASLs). 

    Note that under the WDR Rule, Market Ancillary Service Providers (MASPs):

    • become DRSPs on 24 October 2021
    • can apply to AEMO for approval to classify load as a wholesale demand response unit from June 2021.
  • How do I classify loads?

    AEMO expects that WDR applications will open in June 2021 and intends to hold an information session in May 2021 to prepare businesses for the registration, classification and aggregation processes. Initial registration, classification and aggregation will be by application to AEMO's registration team. However once registered, the new Portfolio Management System (under development) will allow DRSPs to manage their portfolio and submit new classification and aggregation requests.

  • How do I aggregate/disaggregate loads?

    AEMO expects that WDR applications will open in June 2021 and intends to hold an information session in May 2021 to prepare businesses for the registration, classification and aggregation processes. Initial registration, classification and aggregation will be by application to AEMO's registration team. However once registered, the new Portfolio Management System (under development) will allow DRSPs to manage their portfolio and submit new classification and aggregation requests.

  • What is the "Portfolio Management System"?

    The Portfolio Management System is for DRSPs to:

    • View their portfolio of WDRUs & ASLs
    • Submit new application requests for AEMO's approval such as:
    • Classify new NMIs
    • Declassify existing NMIs
    • Aggregate
    • Disaggregate
    • Update baseline methodologies and parameters
    • Request to reinstate a NMI following suspension due to non-compliance.
    • Continue application(s) from draft
    • View the status of submitted requests
    • Request to withdraw submitted requests
    • Self-assess baselines associated to a NMI or by a Portfolio
    • Identify their NMI as unavailable due to operational issues.

    The Portfolio Management System is under development and its external-facing portal is expected to be operational by October 2021. AEMO will hold a workshop for participants in September 2021 on how to use the portal. 

    Note that initial registration, classification and aggregation will be by application to AEMO's registration team from late June 2021. However once registered, the new Portfolio Management System will allow DRSPs to manage their portfolio and submit new classification and aggregation requests.

  • What systems do I need to participate in WDR?

    The WDR mechanism has been intentionally designed to schedule demand side facilities into the NEM dispatch processes.  This service will be provided by a market participant, known as a demand response service provider (DRSP), that will require:

    • knowledge of the NEM market and systems 
    • operational sophistication to manage WDR units according to the relevant rules, policies and procedures.

    Every business is different and needs to conduct its own analysis on the costs/benefits of WDR participation vs other types of demand response.  For WDRU bidding and dispatch, participants can either:  

    • Become a DRSP and set up the required systems to bid and receive dispatch instructions, or  
    • Contract a 3rd party DRSP to manage WDR bidding and/or dispatch on their behalf.

    For an overarching view of how market participants interface with electricity market systems, see the Participant IT interfaces web page, particularly: 

    Likely system requirements for DRSPs are set out in the table. 

     

    Description

    MarketNet

    Any access to AEMO’s market systems requires a data network connection to MarketNet. This is the first step in implementing your access to AEMO’s market systems.

    MSATS

    MSATS is used for NEM energy settlements by determining energy flows from generators and retailers. MSATS does not determine the cost of energy.
    MSATS capability is required for B2M (business to market/AEMO) and potentially B2B communications for the NMIs a DRSP is associated with.

    B2B e-hub

    B2B communications in the NEM are mainly administered through the B2B e-hub (an area of MSATS functionality). The B2B e-hub enables information sharing between the different parties who have an interest in a single customer supply point.

    It is expected that DRSPs will use the following B2B transaction types:

    ·       Receive meter data: Enables DRSP to receive meter data from the MDP/s

    ·       Provide meter data (PMD): Enables DRSP to request meter data from the MDP/s

    ·       Verify meter data (VMD): Enables DRSP to request that meter data is verified by the MDP/s

    Using the B2B e-hub is not mandatory but it is the standard industry form of communication. An alternative is using a bilateral agreement between participants.
    Note that participants need to be accredited before they can transact via the B2B e-hub.  This can be done as part of DRSP registration.

    Wholesale IT systems (EMMS)

    The Energy Market Management System (EMMS) is used to determine the amount and cost of energy to be dispatched. EMMS Markets Portal Applications relevant to DRSPs include:
    • Bid Submissions (bidding)
    • Settlements Direct
    • NEM Prudential Dashboard
    • NEM Prudential Forecast
    • Credit Support
    • Market Info

    Data Interchange

    Data interchange (DI) is a set of cooperating applications to replicate data between AEMO’s Wholesale Market Systems and registered participants' RDBMS conforming to the Electricity and/or Gas Data Models.
    AEMO recommends participants use the Data Interchange software (supplied by AEMO) to automate receiving and storage of the subscribed reports from Data Subscriptions.

    Austraclear

    AEMO acts as a clearing house for a number of energy markets, and facilitates the transfer of money between AEMO and participants. This market settlement function typically involves participants who receive goods and services making payment to AEMO, and AEMO subsequently making payment to participants who provide goods and services.
    To ensure the timely, irrevocable and transparent management of high value payments, AEMO uses the Austraclear service, provided by the Australian Securities Exchange (ASX).  Participants intending to operate in any of the energy markets are required to apply to the ASX for registration to Austraclear.

    Portfolio management system (under development)

    The new Portfolio Management System will allow DRSPs to manage their portfolio and submit new classification and aggregation requests.
    The Portfolio Management System is under development and its external-facing portal is expected to be operational by October 2021. AEMO will hold a workshop for participants in September 2021 on how to use the portal.
    Note that initial registration, classification and aggregation will be by application to AEMO's registration team from late June 2021. However once registered, the new Portfolio Management System will allow DRSPs to manage their portfolio and submit new classification and aggregation requests.

    Demand side participation portal

    AEMO has developed a data portal for participants (including DRSPs) to submit their Demand Side Participation (DSP) information in accordance with the Demand Side Participation Information Guidelines.

    The DSP data portal sits on MarketNet.

     

     

     

     

     

     

General

Participate

Comply with NER and AEMO procedures

  • When can I start participating in WDR?

    To participate in WDR you must be a registered demand response service provider (DRSP). You can begin the DRSP registration and load classification process in late June 2021. The WDR mechanism itself commences in the NEM on 24 October 2021. A DRSP can offer wholesale demand response into the NEM at any time from this date.  

    For further information, see AEMO's WDR program implementation timeline

Bid and dispatch

  • Can the maximum responsive component be changed?

    Yes, processes to amend the MRC for either an individual WDRU or an aggregation of WDRUs will be set out in the WDR Guidelines. In the case of the MRC applying to an aggregation, this requires advance notice as it is an item of bid and offer validation data.

  • Can I temporarily suspend a NMI from an aggregation?

    AEMO is developing a process whereby a DRSP will be able to set a NMI as temporarily unavailable and amend the ""bid available"" capacity accordingly. AEMO is working through this to assess how it might be implemented and the conditions where this is appropriate.

  • Can a WDRU participate in the FCAS markets?

    The interrelationship of WDR and FCAS is discussed here

Provide credit support

  • Why do DRSPs have to provide credit support when they are being paid to reduce demand and not buying energy?

    The WDR mechanism allows customers to gain access to NEM spot prices when they are dispatched for demand response. In developing the WDR, the AEMC decided that this exposure should be bidirectional i.e. that WDR settlement quantities should not be floored at zero. Consequently, the NER settlement equations will result in ""negative"" settlement quantities where:

    • - a WDR NMI is dispatched and 
    • - its metered consumption is above its baseline quantity or a positive demand response is provided at a negative price

    AEMO has no discretion to adjust or deviate from these settlement equations. The requirement for credit support directly results from this risk of negative settlement.

    It is important to note that no WDR settlement occurs if there is no dispatch instruction. Dispatch is based on bids, and DRSPs can bid their capacity to reflect their availability and the pool price at which they are willing to provide WDR.

Make or receive settlement payment

  • What is the settlement mechanism for WDR?

    The FRMP (retailer) at the WDRU funds the demand response. During a demand response event, the retailer will be settled with respect to both the energy market settlements (based on metering data) and the baseline energy level. 

    To ensure that the retailer is compensated following a demand response event, a wholesale demand regional reimbursement rate (WDRRR) will be calculated and charged to the DRSP based on the energy difference between the baseline and the metered energy. This amount will be paid to the retailer. The WDRRR is intended to reflect the cost of the electricity the FRMP is liable to purchase in the wholesale market which is not consumed by, and therefore not charged to, the customer.

    Further information

    Section 2.2.2, WDR High level Design

  • When do I get paid for the demand response I provide?

    Payment is in accordance with NEM settlement time frames. See the NEM settlement calendars and related settlements information for details.

Provide demand side participation data annually

  • What is the purpose of the demand-side participation information (DSPI) portal?

    During the early 2010s there was a recognition of an information gap for AEMO capturing demand-side participation (DSP) information in its forecasting processes. To address this, in March 2015, the AEMC made a final rule determination that enabled AEMO to request information on Demand Side Participation (DSP) from all registered participants in the NEM.

    The rule also required AEMO to develop a set of DSP Information (DSPI) Guidelines which formalised the data collection process and the data collected. These guidelines were first published in 2017. For the collection of DSPI, AEMO has developed a portal known as the DSPI portal.

     
  • Who should use the DSPI portal?
    1. All registered participants in the NEM must submit DSP information each year, between 31 March and 30 April. 
    2. Participants with no DSP simply submit a null submission to acknowledge they have no DSP.
  • WDR doesn't start until October 2021. Do I have to submit demand-side participation information in advance?

    For the April 2021 DSPI submission period, estimates of future WDR can be entered. 

    These are the only WDR estimates AEMO will get in time for preparing the Electricity Statement of Opportunities 2021 forecast.

    For intending DRSPs, the table below indicates how to provide demand-side participation information to AEMO ahead of WDR commencement. 

    TABLE: Entering DSP information about WDR for the summer 2021-22

     

    Current DSP activities

    WDR activities

    Registered participant also intending to register as DRSP

    Need to supply a response

    Mandatory

    • Submit using existing participant ID
    • The information is to be entered as a future DSP program 
    • Tick the box indicating this is intended to be used as WDR

    “Voluntary”

    Intending DRSP (not currently registered)

    n/a

    n/a

    Provide information via email before 1 May 2021:
    To: energy.forecasting@aemo.com.au
    Subject: WDR forecast data – [Company Name]

    Voluntary

  • What is the current status of DSPI portal?

    To match the WDR changes made to the DSPI Guidelines, the DSPI portal has been updated, so it is ready for the April 2021 submission period.

    Key changes include:

    • WDR can now be reported.

    • Ability to report load increase programs in addition to net load curtailment. 

    • Added bulk upload feature, making it easier for participants with many DSP programs to provide this information.

    Prospective DRSPs are asked to please submit their best estimate of WDR (in MW) expected to be able to be bid-in for the summer 2021-22.

     
  • How do I use the DSPI portal? Do you have a step-by-step guide?

    AEMO’s DSPI portal is accessed through MarketNet. 

    The DSPI webpage has a user guide that contains a section on key reference documents to help with accessing the portal and completing the survey. 

    Further enquiries should be submitted via AEMO’s Support Hub.

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