Demand response is an increasingly valuable tool for driving efficiency and cost reduction in grid-powered energy consumption.
Like most other sectors, the energy industry is going customer-centric. The new strategy gives consumers the power to program their consumption volume and schedule based on their unique electricity needs. But the goal is more than keeping consumers happy, although that must also be a part of it.
This article covers the basics of demand response, how it works, and why we need it now.
The Federal Energy Regulatory Commission identifies demand response (DR) as a change in the energy consumption behavior of end-users incentivized by price changes and other programs designed to motivate certain energy usage choices. In other words, it helps utilities match the supply of electricity to the present demand.
The strategy most affects energy consumption behavior related to these major uses of electricity:
This innovative approach to power delivery promises multiple improvements to the existing power grid.
Both consumers and utility win with the implementation of DR programs. Providers operate with greater efficiency from the balanced supply and demand. Consumers also benefit from a consistent and reliable supply of electricity when they need it.
If the efficient delivery of electricity helps address additional energy needs in the near future, it will also help reduce the number of power plants that need to be built for future use. Both parties will benefit greatly from this possibility.
In terms of operation, the primary goal of this strategy is to decrease the demand load during peak usage hours and scatter that to other hours with lesser usage. Utilities need the full cooperation of consumers to achieve this. Without consumer change in consumption behavior, the whole system will not work.
Utility providers eliminate this roadblock by providing pricing incentives and rebates to elicit user participation. Some of the most effective rewards strategies include:
Evidently, homeowners and business owners see the benefits of this approach. As of 2018, more than 4 million consumers have already enrolled in one or more types of DR program with their electricity provider.
The demand response concept is a win-win solution for both providers and consumers for optimizing energy use and bringing down its costs. The approach truly has the capacity to bring efficient and sustainable methods for the traditional grid, as long as providers, authorities, and end-users commit to equitable energy consumption programs.
Sirikit Hiyasmin Loong-Elebaran is a Filipino Freelance Writer who has 9 years of technical niche experience. She mainly provides content for electrical and IT companies. She is also the CEO and Founder of www.zyvolutions.com and www.filipinofreelancewriters.com . You can reach her at email@example.com.
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