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*Self-Dispatch* of Demand Response by an Energy User, based on Critical Peak Pricing

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Energy Users who participate in this category trigger their Demand Response themselves in response to a form of time-sensitive pricing signal – that of Critical Peak Pricing.

It’s labelled “Not Dispatchable” in the NERC diagram because it is not dispatched by a 3rd party, but instead by the Energy User themselves.  That’s different than these other”Dispatchable” methods, where the curtailment is triggered (dispatched) by a 3rd party – the AEMO, or some other party.

Both categories are Demand Response – they are just different types.

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Under Critical Peak Pricing, there is a more dynamic element of pricing added to a more static form of Time-of-User tariff design.

We have seen this used in the NEM on occasions by various NSPs (Network Services Providers) in a framework where they might agree with an Energy User to call a maximum number of “Critical Peak” periods – which might be a day, or an afternoon in summer.  On these occasions where a Critical Peak period is called, the energy user receives some financial benefit from reducing consumption where they can for the period of the alert.

Examples we have seen include:

We’ll add more to this, as time permits.

 

 

 

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