Demand response is defined as changes in electrical usage by demand side resources from their normal consumption patterns in response to changes in the price of electricity overtime, or to incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized. In other words, it reduces energy consumption to relieve stress on the power grid through higher rates at certain times of the day and financial incentives. To do this energy users do simple things, such as, turning off lights, the AC, pumps and nonessential equipment for small amounts of time. This is not too much to ask for because there are financial incentives, grid stability increases and it is beneficial to the environment. By using less electricity, you are lowering your monthly cost for electricity, decreasing the risk of blackouts and reducing levels of carbon dioxide.
The electricity used to power consumers’ appliances comes from the power grid. The power grid must support the base load, or the minimum amount of power estimated for daily use, and usage spikes that occur at certain times of the day. During these peak times of the day energy use rises, increasing the risk of blackouts, or power supply loss. Blackout are not only annoying and inconvenient, they are also very costly. Blackouts cost businesses about $50 billion annually and in 2003, one cost New York City about $750 million.
Demand response will also lower the amount of carbon dioxide levels, which are harmful to our environment. On average, homes in the United States alone release about 150 million tons of CO2 heating and cooling without demand response.
With an estimated 40% increase in energy demand by the year 2030, demand response is a must. With demand response technology, peak load problems will be detected and power diversion and reduction in areas of concern will automatically take place. These smart grids will also shift fuel types to balance fossil fuels and renewable energy.
Websites used:
www.enernoc.com
www.science.howstuffworks.com
www.energy.gov
www.ferc.gov
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