Demand Response Solutions

How would you like to be paid year-round just for agreeing to use less energy at peak electricity demand times?

That’s right, just for committing to participate in a demand response programs earns you a fixed revenue stream! In the event an emergency peak load reduction is not called for during your program enrollment, you still earn and receive payment for your commitment to the demand response program. While demand response programs are not available in every market, they are continually becoming more prevalent throughout North America and there is a good chance that your market has some type of program that you can participate in.

What is demand response? Demand response is the voluntary reduction of electricity consumption during periods of peak electricity demand or high electricity prices. Program participants earn revenue for agreeing to curtail electricity consumption when the local independent system operator (ISO) calls for a demand reduction (also known as a demand response event) to lower its system peak. While every ISO’s demand response program differs, generally they adhere to the following platform: Participants are paid a fixed sum throughout the year based on the level of energy curtailment they agree to reduce during demand response events. If actual electric grid conditions warrant a demand response event, participants are given notice to shed load. Upon successfully shedding their electric demand, the participant then earns additional payments tied to the amount of electricity they actually curtail during the event. These types of demand response programs are truly win-win situations for energy producers and energy consumers: they allow ISO’s to reduce peak demand while alleviating the need to build new peaking power plants, and they allow customers to be fairly compensated for contributing to the peak demand reduction solution.

"Demand response sounds too good to be true. Is there a catch or are there any reasons not to participate in a demand response program?" There is absolutely no catch. Since there is no charge to participate, the only reason a company would not sign up is if it simply cannot amend its operational requirements in order to reduce its energy demand during peak periods.