Demand Response

Every business buys power from the electricity grid. Under the right conditions, some businesses can be paid to reduce consumption during periods of peak electricity usage on the grid. This is known as demand response – and it can help businesses like yours offset energy costs.

Demand curtailment measures don’t need to be complex or significant. Turning off lights and raising air conditioning temperatures could be all you need to do. For greater impact and potential savings, you could have a more sophisticated approach with real-time adjustments to production processes or utilization of your on-site generator.

3 Key Benefits of a Demand Response Program:

1.    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.

2.    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.

3.    Lower electricity prices- Reducing electricity when demand is highest often results in lower index 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 to a minimum.
• When a demand response event is called, you will receive a notification to reduce usage during a certain period of time (typically a two-hour window).
• You will be paid for reducing your demand for energy and perhaps even the energy you did not use based on your program’s specifications.

Demand Response Program Options:

• 4CP Management
• Day-Ahead Demand Response
• Emergency Response Service
• Capacity Management
• Sync Reserves
• Real-Time Price Response