Demand Response – Programs that allow consumers to be rewarded for using less energy during times when energy is in high demand.

These kinds of programs are very useful and important to high energy use areas. The main reason being is that energy is not infinite, and also cannot be stored in large quantities. This means that during periods of high use for energy, the supply cannot meet the demand. It also means that even if excess energy is made in times where energy use is low, it cannot be stored away for future use.

Of course not many people would go out of their way to do something for nothing, thus the reward is an incentive for them to do so. The reward being  money, or something of monetary value.

In total, this is a voluntary based program that offers a reward for participating, and is more efficient in the long run, both money and time wise. This comes from the fact that, yes, more power plants can be built to help contribute to the supply, but that in itself requires several things. Those things being places to put the power plants, money to get the workers and building materials, and then time to build them. This is in contrast with just using what already exists, and a good number of people participating in the program.

While more energy isn’t being made during this process, it simply means that the unused energy will be directed elsewhere. That is a better outcome than everyone using a lot of energy when there is less than the demand, resulting in a black out, or something equally worse. Really, the only “con” than can be taken from this is that you may not get AC during heatwaves, or something.

Overall, giving up some energy use during the specific periods of high demand is a lesser sacrifice, when compared to the potential to lose it all, or having to pitch in money, time, and resources to get more.

http://demandresponse.nrg.com/demand-response

http://www.enernoc.com/our-resources/term-pages/what-is-demand-response

http://www.pge.com/en/mybusiness/save/energymanagement/whatisdr/index.page