As a demand response program participant, you can get paid to reduce or shift your facility’s electricity demand when your regional power grid is reaching peak demand. Demand curtailment measures can include simple things like turning off lights and raising air conditioning temperatures, or they can be sophisticated such as real time adjustments to production processes. It’s important to consider the benefits and costs demand response has on your organization given your specific circumstances.
Three Key Benefits of a Demand Response Program:
- New revenue stream: Perhaps the biggest benefit to your organization is the financial one. System operators and utilities will provide financial incentives when you reduce or shift your demand away from the times when the overall demand for energy is high so that the stress on the overall utility grid is reduced. There are many different types of demand response programs, some voluntary and some requiring a firm commitment when called upon, with different incentive amounts.
- Power reliability: Reducing demand improves the reliability of the grid. Less demand means less stress on energy transmission and distribution systems, which makes them less likely to fail.
- Lower electricity prices: Reducing electricity when demand is highest often results in lower wholesale prices. As demand for power decreases, less efficient and often more expensive forms of electricity generation are not needed, which helps keep energy costs in check.
How it works:
- We work with you to identify where you can reduce energy while maintaining business operations.
- We evaluate demand response programs available based on your location and facility requirements, and enroll you in a plan that maximizes your payout and keeps any risk at a minimum.
- When a demand response event is called, you’ll receive a notification to reduce usage during a certain period of time (typically a two-hour window).
- You get paid for reducing your demand for energy and perhaps even the energy you didn’t use based on your program’s specifications.