APG Becomes Implementation Agency for Demand-Side Response Electricity Saving Product
APG implements law on the reduction of electricity consumption (SVRG) – with this new product consumers can make a large contribution to saving energy, cushioning electricity prices, and maintaining system stability.
Yesterday, the Austrian parliament passed the Electricity Consumption Reduction Act (SVRG). In addition to voluntary measures, this law includes an incentive model for consumers (e.g. commercial enterprises, businesses and industry) to reduce their electricity consumption within designated peak periods between 8-12 am and 5-7 pm, or to shift it out of the peak periods. APG is the technical implementation agent for this electricity consumption reduction product in accordance with the law.
The product
With the new demand-side response electricity saving product, it is possible to make use of the flexibility of consumers by reducing electricity consumption or shifting it outside of peak consumption times in a way that reduces prices and benefits the system. All consumers who agree to provide at least 2 MWh in two hours as possible flexibility during peak consumption periods can participate. Whether this is actually called up by APG depends on the energy situation at the hour offered and in particular on whether the peak consumption can be covered to a large extent by renewable power generation. The first invitation to tender is currently scheduled for the beginning of January. Interested parties can obtain up-to-date information at markt.apg.at/netz/demand-side-response-stromsparprodukt/ and register at info.lastreduktion@apg.at. APG will also organize a special market forum on December 19 to provide all interested parties with detailed information on this new product and the tender conditions. According to the government decision, a total of up to 100 million euros is available for this purpose until March 31, 2023.
APG is the technical implementation agent for this demand-side response product which is another essential step (besides the ‘Powermonitor’ as a forecasting tool for private households and other consumers) to raise awareness of the "best" electricity saving hours on the one hand, and, on the other hand, to make the saving target of five percent within these peak electricity times actually viable. The Powermonitor has already been available at www.apg.at/powermonitor/ since December 1, 2022 and forms the basis for the call-off times of the new Demand Side Response product.
Based on the law, APG is preparing the contractual, technical and organizational measures for the preparation of the first invitation to tender and the successful implementation of the product. "Saving electricity is the order of the day for businesses, industry and society. The more consumers participate in this model, the greater the dampening effect on gas consumption and electricity prices at peak times and the greater the electricity-saving success for Austria will be. At the same time, it is also the first comprehensive product to use consumer flexibility to support the system. Thus, it is also an essential step towards the digitalization of the entire energy system," says Christoph Schuh, APG company spokesperson.
At the next special market forum on December 19, all interested parties will receive more detailed information about the product.