Boston, March 20, 2012 — EnerNOC, Inc. will provide automated demand response capacity for Genesis Energy on New Zealand's South Island.
This agreement builds upon EnerNOC's success in the instantaneous reserves market on New Zealand's North Island and makes it the first demand response aggregator to secure this reserve capacity in the South Island.
EnerNOC will immediately begin enrolling commercial, institutional and industrial energy users who can curtail usage with single-second precision in exchange for regular financial payments.
EnerNOC's AutoDR resources will then be offered year-round to the instantaneous reserves market, which helps to maintain reliable, cost-effective and clean energy supply throughout New Zealand.
New Zealand has committed to making its electricity generation sources 90 percent renewable by 2025. Currently, the nation's electricity grid is served largely by hydropower, the vast majority of which flows northward from the South Island.
The nation's instantaneous reserves market helps to maintain reliable import and export of electricity between the islands by regulating frequency.
To provide reserve capacity, EnerNOC will contract with a robust, diverse portfolio of energy users from industries such as manufacturing, food processing and cold storage. These users will be paid based upon the load reduction they can provide, and when an under-frequency dispatch is triggered, this load will be instantaneously removed from the grid.
This innovative AutoDR resource offers benefits over traditional generation sources. For example, EnerNOC's AutoDR participants may be restored in a staggered fashion, which limits the further stress on the grid that would occur if they were all to come back online at once.
This agreement expands upon EnerNOC's existing position on the North Island, where it crossed the 100 MW weekly average bidding threshold in late 2011.