VICTORIA COLD STORAGE TAKES THE HEAT OFF THE GRID WITH DEMAND RESPONSE

August 2018

 
Victoria Cold Storage capitalised from the AEMO-ARENA demand response trial over the 2017-18 summer.

Victoria Cold Storage capitalised from the AEMO-ARENA demand response trial over the 2017-18 summer.

Victoria Cold Storage is a traditional logistics business dedicated to the distribution and warehousing of dry, chilled and frozen food products. However, over the last year the business has joined the cutting edge of Australia’s energy transformation by participating in a demand response trial conducted by the Australian Energy Market Operator (AEMO) and the Australian Renewable Energy Agency (ARENA).

At its two facilities in Campbellfield, Victoria Cold Storage provides the system operator, AEMO, with the capability to reduce demand, which can be activated during system emergencies when grid demand threatens to outstrip supply.

With the assistance of a partner aggregator, Victoria Cold Storage installed control equipment that automatically and safely curtails load when requested by AEMO. By altering the use of refrigeration equipment for brief periods of time, each facility is able to reduce electricity demand by about 350 kW, without disruption to normal operations or product quality.

The program has a financial benefit for the company, as it receives payments each month for making their flexible load available to the grid. Best of all, the company is helping out other businesses and the broader community by increasing the reliability of the energy system for everyone.

The rise in electricity prices last year accelerated our plans to join Mars sites in the US, UK and 9 other countries in moving to renewable electricity. We acted quickly because the price volatility of energy in Australia made renewables the best option for our business, in addition to getting us closer to our commitment to eliminate greenhouse gasses from our operations by 2040.
— Barry O'Sullivan, General Manager, Mars Australia – August 2018

Find this case study on page 24 of the first edition of Navigating a dynamic energy landscape: a briefing for Australian businesses.