We use electricity every day. It is impossible to imagine a life of a modern person without electricity.  Computers, Cell Phones, even light bulbs, everything requires electricity today. When we turn on a any source which requires the usage of electricity like a TV or an air conditioner – it’s called a demand. Our demand for electricity is growing from day to day and scientists predict that demand will rise at least 40 percent by 2030

By saying demand resp­onse we mean the abi­lity to voluntarily trim our electricity usage at specific times of the day (such as peak hours) during high electricity prices, or during emergencies (such as preventing a blackout). Electricity blackouts, such as the one that hit the both Europe and the eastern United States and Canada in 2003, happen when the power supply is lost, usually caused by a malfunctioning electrical grid or component or by a supply-demand discrepancy. Blackouts aren’t just inconvenient, they’re also money pits. It’s been estimated the 2003 blackout cost New York City alone up to $750 million in lost revenue – States an article from the “USA today“.

Currently, huge industrial companies are looking at demand response solutions as an important piece to the infrastructure solution. These solutions also have the potential to help both the providers and consumers to save money, because such solutions could eliminate the need to build extra power plants and delivery systems which results in saving lots of money.

It was determined by The U.S. Department of Energy that “the average home uses about 11,000 kilowatt-hours annually. Consumers spend 8.3 cents per kWh, so that adds up to each household spending about $900 on electricity every year”.

In conclusion we can say that Demand response is indeed a great a way for people who consume lots of energy to make smarter decisions about the energy consumption. A smart grid which can be developed could also be a green energy grid which will have the ability to balance the energy output from fossil fuel-driven power generators and renewable energy sources.