Electricity is the kind of thing that everyone uses, but not everyone realizes is such a necessity. This past September, I went home for the weekend and the entire time i was there our power was out. It was a frustrating and annoying weekend, especially when i wanted tot get home work done! But it was the kind of thing i never really noticed was a burden (losing power) until it actually happens. Not to say this was the first time my power has ever gone out, it was just the most recent and inconvenient.
That being said, our demand for electricity is continuously growing. Demand response, however, manages the amount of electricity used by customers depending on market supply conditions. Reasons to reduce or shut off power or use generators when the market prices change or at critical times when energy supplies are low, or there is extra demand on a power grid. Customers are requested to reduce or shut off power during demand response. Demand response can lower peak prices because supply and demand goes into effect, basically by customers using less power.
Basically, in simpler terms, demand response programs give us the consumers an easier way to conserve our energy and electricity at specific times, usually peak usage times.
Demand response is a resource to customers, which allows them to mange or shift their usage of electricity from time to time.
California’s three regulated investor-owned utilities: PG&E, SCE, and SDG&E. are currently how demand response programs are administrated and distributed.
There 3 types of demand response
emergency DR which is used to avoid involuntary service interruption when supply is scarce.
economic which asks customers to use less electricit;y when the convenience of consuming it is worth less than actually paying for it.
ancillary services which are services needed to ensure operation of the grid that usually is provided by generators.
Resources:
http://en.wikipedia.org/wiki/Demand_response
http://science.howstuffworks.com/environmental/green-science/demand-response.htm
http://www.cpuc.ca.gov/PUC/energy/Demand+Response/