Peak Response
Peak Demand Response: Household Annual Demand Response method
The PDRS Rule sets out calculation methods for determining the number of peak reduction certificates that can be created from eligible activities.
The PDRS has 3 calculation methods for calculating peak demand reduction:
- Peak Demand Savings
- Peak Demand Shifting
- Peak Demand Response.
Each currently has 1 sub-method.
The Household Annual Demand Response (HADR) sub-method of the Peak Demand Shifting Method sets out how to calculate the peak demand capacity for households or small businesses that participate in a demand response program.
Demand response programs reward households and small businesses for using less electricity during peak periods in response to:
- supply constraints
- demand spikes
- price increases in the electricity network.
Read below for more information about:
- activities under this method
- activity requirements
- requirements for equipment you can use
- fact sheets you need to give your customers.
Eligible activities
The PDRS Rule includes one Activity Definition under the HADR Method. This is ‘BESS2 - Onboard a behind the meter battery energy storage system with a demand response aggregator.’
This activity involves the electricity account holder signing a contract that allows a Demand Response Aggregator to control their battery for at least 12 months.
Activity requirements
Batteries under Activity Definition BESS2 must meet the requirements in the PDRS Rule.
BESS2 requirements are set out in clause 9 and Schedule D of the PDRS Rule.
If you are an ACP, refer to the PDRS Method Guide. It will help you understand battery activity requirements under the PDRS Rule.
Changes to the PDRS Rule commencing on 1 July 2025 increase incentives and change requirements for BESS2. See our Quick Reference Guide – June 2025 and updated PDRS Method Guide for more information.
Equipment requirements
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.
Multiple batteries installed together as a system are considered a ‘battery energy storage system.’
Fact sheet requirements
ACPs or their representatives must give a BESS2 Fact Sheet to the customer with the quotation for a demand response contract. You need to do this before they nominate the ACP and sign the demand response contract.
ACPs must keep records as evidence of providing the fact sheet. Auditors will check the fact sheets have been provided during audit.
