As Australia's energy landscape evolves, Commercial and Industrial (C&I) energy users are increasingly exploring flexible market opportunities to unlock new revenue streams. One option often considered is AEMO’s Wholesale Demand Response Mechanism (WDRM). But how does it stack up against other market opportunities—and is it genuinely worth the effort for sophisticated C&I operators?

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What is the Wholesale Demand Response Mechanism (WDRM)?

WDRM allows eligible customers to voluntarily reduce electricity consumption during high-price periods and get paid for the reduction. Unlike traditional demand response programs, WDRM operates directly in the wholesale energy market under a formal bidding process. Participants bid a “negawatt” into the market through a Demand Response Service Provider (DRSP) and get paid the spot price for energy they don’t consume.

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Is It Worth It for C&I Customers?

For small, unsophisticated loads with no flexibility technology, WDRM can be a simple entry point. But for larger C&I users, the answer is more complex:

• Revenue potential is modest. WDRM payments depend entirely on high spot prices—which are becoming less predictable—and performance is capped by the site’s ability to prove a “baseline” of usage that is then reduced.
• Opportunity cost is high. When responding to a WDRM event, flexible assets are locked out of other markets (e.g. FCAS, wholesale arbitrage, or retail demand charge savings) that often deliver greater returns.
• Integration is siloed. WDRM doesn't align with modern energy strategies that rely on automation, co-optimisation, and full-stack market participation.

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WDRM: Low Tech, Low Value?

WDRM is often seen as a low-tech pathway into demand response. It relies on basic metering data and retrospective baselines, with no requirement for real-time control or telemetry in most cases. This limits its precision and performance. For sophisticated C&I operators with automated systems and fast-response capabilities, WDRM feels outdated and underwhelming. More critically, it doesn’t support co-optimisation, meaning flexible loads are locked into a single market and miss out on higher-value opportunities like FCAS or energy arbitrage. In short, it’s a blunt instrument in a market that increasingly rewards precision.

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PowerSync’s View

WDRM can play a role—but it’s not the future. At PowerSync, we believe the most value lies in platforms that orchestrate real-time, multi-market participation, optimising across spot, FCAS, and emergency markets while giving customers transparent visibility and control.

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Instead of limiting flexibility to a single market, PowerSync’s platform delivers holistic value by dynamically identifying the most lucrative dispatch opportunities—without sacrificing performance, compliance, or operational integrity.

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WDRM may be a useful stepping stone, but it is not a long-term solution for C&I energy users serious about flexibility. For those with real assets, real control systems, and a desire to maximise value, it’s time to think beyond WDRM.

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Let us show you how.

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