What is Demand Management?

We are committed to using demand management to defer or avoid investment in the network where possible and cost-effective to do so.

In this way, demand management can deliver benefits to consumers through lower transmission network costs and therefore lower electricity bills.

‘Demand management’ is a broad term used by our business to refer to any deliberate change to the amount of electricity demanded from the network. Typically this involves a short term decision to reduce energy consumption in response to a specific event. This may include load shedding in response to a network constraint, or bringing on-site generation or storage online.

When the demand for electricity at peak times approaches the capacity of network infrastructure, TransGrid must act to maintain reliable electricity supply to consumers. Demand response initiatives typically use standby electricity generators or other embedded electricity generation (eg. solar panels or diesel generators) or willing customers to reduce electricity usage at times of peak demand. In the future in may also involve energy storage options (eg. batteries).

By reducing peak demand, we can defer or avoid the need to build new transmission lines, cables and substations. This means that demand management has the potential to reduce electricity bills in the long term while still ensuring a safe and reliable supply of electricity.