The Household Annual Demand Response sub-method (HADR Method) under the Peak Demand Reduction Scheme Rule (PDRS Rule) incentivises capacity to provide demand response. Demand response programs reward households for reducing electricity demand during peak periods in response to supply constraints, demand spikes, or price increases in the electricity network.
Eligible activities
The PDRS Rule includes one Activity Definition under the HADR Method: BESS2 - Sign a behind-the-meter battery energy storage system up to a demand response contract. This activity involves the electricity account holder signing a contract allowing a Demand Response Aggregator to control their residential battery for 3 years.
Certificates can be created from BESS2 implementations where the Implementation Date is on or after 1 November 2024.
Activity requirements
To be eligible to create certificates under the PDRS, household batteries under Activity Definition BESS2 must meet the requirements in the PDRS Rule.
The PDRS Method Guide will help prospective ACPs understand the requirements that will need to be met for battery activities under the PDRS Rule.
Equipment requirements
Multiple batteries installed together as a system are considered a ‘battery energy storage system.’ Activity Requirements for BESS2 in the PDRS Rule require that the batteries:
- are listed on the Clean Energy Council’s list of approved batteries, which is the product list specified by the Scheme Administrator
- meet additional warranty and connection requirements set out in the PDRS Rule
- have a combined capacity that is greater than 2 kWh and less than 28 kWh
Requirements are set out in clause 9 and Schedule D of the PDRS Rule.
Fact sheet requirements
You will need to provide a BESS2 Fact Sheet to the customer with the quotation for the demand response contract (i.e. before they nominate the ACP and sign the demand response contract).
It’s good practice to keep records as evidence of providing the fact sheet. Auditors will check the fact sheets have been provided during audit.
Relevant documentation
BESS2 Nomination Specification