Meeting a strained grid from the demand side: customers cut their electricity use during hours of high demand in exchange for incentives, instead of the grid starting another plant. In some programs the operator can directly switch off enrolled cooling equipment or industrial processes; in others customers choose whether to respond to an announced event, and either way the avoided peak spares the least efficient, most expensive generation.
Facts
Disputed
Formulated YearUtility demand-side management and interruptible-load programs predate formal terminology by decades; the US Federal Energy Regulatory Commission's 2011 definition is the widely cited formal standard. Concept Domain Connections
Associated With
Source United States Energy Information Administration Official Site
ERCOT operates demand response and emergency response service programs as part of its ancillary services market for the Texas grid.
FERC Order 745 (2011), upheld by the US Supreme Court in 2016, required demand response resources in wholesale energy markets to be compensated at the locational marginal price.
Source United States Energy Information Administration Official Site
PJM Interconnection operates one of the largest and most financially active wholesale demand response markets in North America through its capacity auction Emergency Load Response Program.
Sources
1. United States Energy Information Administration Official Site
US Energy Information AdministrationToday in Energy, Demand response saves electricity during times of high demand
Lower demand means that less efficient, and often more expensive, forms of electricity generation do not need to come online during times of high demand.
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That rapid ramp up makes it more difficult for grid operators to match grid supply (the power they are generating) with grid demand in real time.
View the Source 2. Wikipedia
Wikimedia FoundationBackgroundQuote, Background
Changes in electric usage by end-use customers from their normal consumption patterns in response to changes in the price of electricity over time, or to incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized.
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