NSW Government is working on expanding their PDRS demand reduction scheme (creating PRCs) with a Measurement &Verification activity for C&I activities.

First in the M&V pipeline is a new tool for PIAM&V, which Metimur also very much welcomes. The M&V PDRS capability in the same tool will be developed next.

Here is what they recently told us:

“You’re on the money; there is an M&V PDRS activity in the pipeline. We’ve been collaborating with CSIRO as part of the RACE 2030 program. They’ve developed a tool that will streamline M&V for C&I sites by integrating various data sources to create counterfactuals.

They’ve just wrapped up development so it’s at a ‘minimum viable product’ stage. The next stage of development will likely focus on peak reduction. We’ll be exploring ways to create an activity in the PDRS that leverages the tool for our next rule change.   

We knew this project was on the horizon, so rather than roll out something that mimics the current PIAM&V approach in the ESS we waited for this tool to get developed so we could create an activity based on it.”

Metimur is working on better understanding exactly how this PDRS M&V activity will generate PRCs, and whether it can work in tandem with FCAS support services and revenue, but here are the basics of the PDRS scheme:

2.1 What is a PRC?

PRCs are the “currency” of the Peak Demand Reduction Scheme (PDRS) and can be bought and sold in the market. The market for the trade of PRCs is created by the obligation of Scheme Participants (typically electricity retailers) to surrender PRCs to us.

PRCs are created from eligible activities that make peak demand reduction capacity available during a  compliance period between 1 November and 31 March. Peak demand reduction capacity is measured in kilowatts (kW). One PRC is equivalent to 0.1 kW of peak demand reduction capacity averaged over one hour between 2.30pm and 8.30pm Australian Eastern Standard Time (AEST)h on one day in the compliance period.

The number of certificates that can be calculated from an implementation is based on the:

• reduction capacity averaged over one hour
• in each of the 6 hours between 2.30pm and 8.30pm AEST
• on one day within the compliance period.

Compliance period Is the period commencing on 1 November and ending on 31 March the following year.

Equation 1

Number of PRCs = Peak Demand Reduction Capacity x Network Loss Factor x 10

Peak Demand Reduction Capacity, in kilowatts, is calculated using Equation 2a.

The Network Loss Factor is a factor that accounts for energy losses in the network (see Table A3 of the PDRS Rule).

The Summer Peak Demand Reduction Duration (6 hours) is based on the peak demand reduction period of 2.30pm to 8.30pm AEST.

Equation 2a

Peak Demand Reduction Capacity = Peak Demand Savings Capacity x Summer Peak Demand Reduction Duration x Lifetime

Peak Demand Savings Capacity is calculated using an activity specific peak demand savings capacity equation set out in the PDRS Rule (see example below).

The Summer Peak Demand Reduction Duration (6 hours) is based on the peak demand reduction period of 2.30pm to 8.30pm AEST.