OXFORD COLD STORAGE WARMS TO DEMAND RESPONSE
July 2019
Oxford Cold Storage receives compensation for participating in demand response programs.
Oxford Cold Storage employs more than 400 people and operates the largest temperature controlled third-party logistics warehouse in Australia. Its 26-hectare site in Laverton North in Victoria accommodates 13 buildings with a total capacity of 1,040,000m3. 165,000 pallets of meat, dairy and food products are stored at temperatures from 18⁰C to -25⁰C.
Oxford Cold Storage had undertaken substantial energy efficiency improvements over the past eight years, which have allowed the company to double its cold storage capacity while keeping total electricity use at 37GWh per annum. Despite these efforts, during 2018 the company’s annual cost of electricity rose 215% to over $6.4 million. With straightforward energy efficiency opportunities exhausted, Oxford Cold Storage began exploring opportunities to participate in demand response programs with the support of a partner aggregator.
Oxford Cold Storage now participates in two demand response programs. One facilitates reductions in electricity demand by up to 3,250kW for short periods – usually no longer than six minutes. This helps the market operator maintain the frequency in the National Electricity Market (NEM), with large energy users’ electricity loads automatically stopping and starting when required.
The second demand response program is activated during periods of unusually high demand. For example, during heatwaves when air conditioner loads are very high, Oxford Cold Storage can reduce demand by 3,250kW for up to two hours with no impact on business operations or quality.
Since volunteering to provide these services, the compensation payments have offset 10% of Oxford Cold Storage’s rise in electricity costs.
“It is clear that demand response has untapped potential to manage demand during extreme peaks in Australia, just as it does in other countries.”
Find the case study on page 26 of the second edition of Navigating a Dynamic Energy Landscape: A briefing for Australian businesses.