Demand response is a set of energy management options that lets participants monetize their energy through both cost avoidance and energy cost offset strategies.
How Does Demand Response Work?
Grid operators pay customers who have the ability to reduce or modify electricity use in response to emergency situations or volatile price spikes. When a situation occurs, grid operators contact curtailment service providers, like us, in advance allowing us ample time to fulfill your obligation to curtail the agreed upon amount of electricity use. When customers participate in demand response, grid operators are able to preserve system reliability, which ultimately enhances competition and mitigates price spikes that encourage the demand side of the market to respond better to wholesale price signals.
By participating in demand response programs, you increase your own cost efficiency while delaying or eliminating the need for new generation which in turn also helps the environment.