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Demand Response

Demand response refers to the voluntary reduction of electricity demand at the request of the grid operator. This usually occurs when the electric grid is under stress due to the lack of supply to meet the demand. Your ability to reduce your demand during the crisis is compensated by the grid operator in a form of cash payments.

How will it pay me money?

Electric demand (lights, machines, air conditioning) are reduced according to a preplanned load prioritization scheme during the called event. An alternative to load shedding is on-site generation of electricity to supplement the power grid. Under conditions of tight electricity supply, demand response can significantly reduce the peak demand and, in general, electricity price volatility.

Shedding loads during peak demand is important because it reduces the need for new power plants. Peak demand may happen just a few times a year, so those assets run at a mere fraction of their capacity. Demand response is a way for utilities to avoid large capital expenditures, and thus keep rates lower overall.

With no outlay for enrolling and participating, and no fees or financial penalties, membership in this program is risk-free and cost-free. If no event is called you are still paid. You save on electricity when prices are the highest.