New Virtual Power Plant to boost energy reliability in NSW
The Minns Labor Government has launched the state’s first large-scale Virtual Power Plant under the NSW Electricity Roadmap, which will help manage the reliable supply of electricity during peak periods to avoid blackouts and price spikes.
A Virtual Power Plant coordinates businesses to reduce or shift their energy use for short periods when demand is high, such as during cold snaps and heatwaves. This helps prevent outages and puts downward pressure on prices for all households and businesses in NSW, while also reducing the need to build additional large-scale energy infrastructure.
Enel X will operate three large-scale Virtual Power Plants. The projects are among four being underwritten by the NSW Government as part of the Roadmap’s first firming tender, to ensure more renewable energy projects get built to replace ageing coal-fired power plants.
The three Virtual Power Plants will involve 21 businesses at 108 sites across Greater Sydney, Central Coast, Newcastle and Illawarra. The major power users, including heavy industry, factories, retail, universities, data centres and food producers, will be orchestrated to use less energy at the same time via the Virtual Power Plant, which has the same effect as bringing a physical power plant online.
The first Virtual Power Plant under the Roadmap has been launched by NSW Minister for Climate Change and Energy, Penny Sharpe, during a visit to one of the participants, Visy Recycling, in Western Sydney.
When all three are operational by summer, they will have a combined capacity of 95 megawatts of demand response. This means they will free up enough electricity to power more than 30,000 homes for two hours during times of peak demand, at short notice if needed, to keep the lights on and the grid stable.
The businesses involved will be compensated to adjust their energy use when the grid needs it most, which is anticipated to be no more than a few times a year. This is a low-cost alternative to building more large-scale generation projects that may only be used a few times a year.
Through projects like these, the Minns Labor Government is delivering a reliable, affordable energy system that benefits communities and the economy, and ensures energy security for NSW.
Quote attributable to Minister for Climate Change and Energy, Penny Sharpe:
“The launch of this Virtual Power Plant marks a major milestone in the state’s clean energy transformation. It’s another innovative resource to keep the lights on and put downward pressure on energy prices for all homes and businesses as coal-fired power stations exit the system.
“Through initiatives like this, industry, businesses and our major cities are stepping up to play a vital role in shaping our renewable energy future.”
Quote attributable to Member for Granville, Julia Finn MP:
“I’m thrilled to see businesses in Western Sydney actively contributing to easing pressure on our energy grid during peak periods, such as during cold snaps and heat waves.
“Industries are showing how smart energy use can help power NSW more reliably. This is about backing businesses to be part of the solution.”
Quote attributable to Enel X Australia Country Manager, Carl Hutchinson:
“We’re proud to deliver the latest tool for the state to protect homes and businesses from blackouts and high prices during periods of peak demand.
“This isn’t just a win for the grid, it’s a win for NSW businesses that are stepping up to play a critical role in keeping our grid secure while earning revenue for doing so.”