Demand Response is the modern way of consuming enemy where the consumer plays a significant role in the operation of the electric grid. This power consuming technique is based on regulating the amount of power the grid has to provide at the peak times. The reduction of the consumed power can be done by temporarily reducing non-critical systems such as heating, cooling, and lighting; or turning on standby generators for short periods of time in businesses and homes. These short periods of time represent the peaks in which the grid has to run on full capacity during extremely hot or cold weather, and some spot event. The Demand Response technique, thus, prevents the grid from block outs, reduces the number of old-inefficient power plants that are needed for keeping the grid up running at the peaks, and increase the reliability of green energy source.
Many organizations, nowadays, offer Demand Response management to businesses and pay them for participating. These organizations use a very advanced real time monitoring system to track energy consumption. And based on the information they get, the organizations contact their participants so they start to lower their power consumption and level down the peak. This technique results in lower price and more sustainable grid.
http://energy.gov/oe/technology-development/smart-grid/demand-response