Stephen Drew from EnerNOC tells the exciting story of a demand management company in the international, and NZ context. Told at the Wellington IEA DSM storytelling workshop on March 17, 2014.

1. IEA DSM workshop
Stephen Drew
17 March 2014

2. 2
Setting our benchmark
IRB world
ranking
Team
Year of first
test
Matches Won Lost Draw %
1 New Zealand 1903 512 390 104 18 78
2 South Africa 1891 428 272 135 21 66
3 Australia 1899 563 287 260 16 52
4 England 1871 671 360 261 50 57
5 Ireland 1875 634 266 337 31 44
6 Wales 1881 660 340 292 28 54
7 France 1906 701 385 284 32 57
8 Samoa 1924 194 94 95 5 50
9 Argentina 1910 375 205 160 10 56
10 Scotland 1871 631 266 333 32 45
Our All Blacks lead rugby like our Interruptible Load leads DSM

3. 3
Middle of Middle Earth
Hydro lakes
We are top of the
South Island
“electrically”
Auckland
DR – Lower
North Island –
20MW
Wind
Renewable generation
HVDC
Geothermal
HVDC Pole 3
Wellington

4. 4
Our grid’s inertia is changing
Normal flow Maximum flow
Power flow (MW) 850 1050
Bi-pole cover (MW) 500 500
HVDC Reserve risk 350 550
CCGT Reserve risk 385 385
Contingent Event risks are increasing the speed
that they can happen
3 CCGT’s
385MW
Aluminium
Pacific Aluminium (Tiwai Point)
600MW
Newsprint
Norske Skog (Kawerau)
80MW reserve
HVDC
1050MW
S  N transfer
= Contingent Event which
sets the reserve risk
Poles #2 and #3 operating on the HVDC

5. 5
Our proud DSM history in New Zealand
• 1950’s - All State hydro, £5/kW demand, ripple hot water to manage peaks
• 1960’s - prices in c/kWh to support coal station(s) for dry years, pole #1, steel
and pulp&paper begin production
• 1970’s – Huntly (coal) and natural gas, alumimum starts production
• 1980’s – ECNZ and power boards – central price control
• 1989 - NZSteel melters became the first load to provide reserve to the HVDC
transfer
• 1990’s – 1992 was a bad dry year, ECNZ split, CCGTs arrive and 1996
wholesale competitive market begins with 6s and 60s reserve products, Total
Metering (EI) develops algorithms for fast frequency response
• 2001 – next bad dry year but DR fails to take-off and goes “on-hold” even
though first customers respond to prices on a Demand Exchange

6. 6
Our DSM story started in 2007 here in Wellington
Technology commercialised
as our Smart Grid Terminals
Pilot at Wellington Port Coldstore (300kW in SIR)
Wellington Port Coldstore
100MW target set
to break even
Then in 2009

7. 7
We can now offer more than
200MW to the reserves market
Where we are in 2014
We have a diversified
portfolio (large industry,
commercial and
residential hot water)

8. 8
Our IL is fast, in fact very fast
We can respond very fast
and very reliably as a
portfolio

9. 9
Our international league table in our EnerNOC world
DSM Country Programme Features Weighting
Frequency
Response
New Zealand
Canada
IL*
LSSi Alberta
<1s, 1s data, medium [MW]
<0.2s, 20ms data, small [MW]
Balancing
Canada
United States
Ontario
regulation
BPA pilot
Real-time, small +/-MW]
10min, small [+/-MW]
Capacity
markets
United States
Australia
PJM
WA
Complex >2h, very large [MW]
>2h, medium [MW]
Network DR
Australia
UK
NSW
DNOs (low
carbon fund)
Summer peaking, small [MW]
Winter peaking, small [MW]
*New Zealand - IL was recognised by PLMA with “Outstanding Program Achievement” award in 2011

10. 10 10
And what of the future – Thermal Energy Storage

11. 11
Welcome to our world in Wellington