Demand Response: Getting Paid to Reduce Electricity

Demand response is a technology that can be used to manage electricity consumption during times of peak demand. In much the same manner that dynamic demand technologies can be implemented to shut off power passively during times of high demand or when electricity prices are highest, demand response technologies do so actively. Demand response can be achieved by reducing power usage or by generating power on-site to meet the consumer’s power needs and reduce their dependency on the power grid. This should not be confused with energy-efficiency, which involves reducing the rate of power consumption while still performing the same tasks uninterrupted. However, demand response can be considered a tool used to achieve smart energy demand, which encompasses energy-efficiency, building energy management (commercial and residential), on-site generation of power, and charging of electric vehicles.