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.

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 (please see the Baseline Eligibility Compliance and Metrics Policy). WDR settlement and dispatch performance are both measured against a load's baseline. See the Predictability of Load Calculator to test your NMI's predictability.

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.

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.

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

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.

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).

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.

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 

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. 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.

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.

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).

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

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

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: 

• Guide to Electricity Information Systems  
• Connecting to AEMO’s Electricity IT Systems  
• Guide to User Rights Management  

system requirements for DRSPs are set out in the table. 

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.

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.

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.

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.

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.

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. 

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.

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.

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.

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.

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.

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: 

• Guide to Electricity Information Systems  
• Connecting to AEMO’s Electricity IT Systems  
• Guide to User Rights Management  

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

You are right. Fortunately, there are some useful web pages to point you in the right direction:

• Acronyms and abbreviations  
• Explanations about the energy markets, participants, governing bodies and regulations

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. 

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.

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.

The interrelationship of WDR and FCAS is discussed here. 

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.

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

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

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.

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.

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

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.

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.