AEMC approves landmark demand response mechanism, rejects calls for delay

RENEWECONOMY | The Australian Energy Market Commission has provided final approval for the establishment of a new ‘wholesale demand response mechanism’, that will allow large energy users to trade reductions in electricity use in the electricity market for the first time, in one of the biggest energy market reforms in decades.


The rule change means that the market can now encourage a smarter, demand side response that save energy use at critical peak times, rather than a “supply-side” response that simply encourages generators to burn more fuel. It will be particularly important in summer, and should lower prices for all.


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