Demand response is for customers to use less energy during times of peak demand. The intent is to manage customer consumption of electricity in response to supply conditions, similar to dynamic demand mechanisms. For example, having electricity customers reduce their consumption at critical times or in response to market prices. The difference is demand response mechanisms respond to explicit requests to shut off, where dynamic demand devices passively shut off when stress is sensed in the grid. Demand response programs are designed to be fiscally and environmentally responsible when demand peaks.
Storms, heat waves, maintenance and power plant repairs effect the supply and demand for electricity, often occurring during the summer season. Demand response is different from energy efficiency, which means using less power to perform the same task constantly or when the task is performed. Demand response is a component of smart energy demand. This includes energy efficiency, home and building energy management, distributed renewable stress and electric vehicle charging.
There are three types of demand mechanisms. First, emergency demand response is to avoid unexpected service interruptions when supply is scarce. Economic demand response is to allow electricity customers to avoid consumption when the convenience of using electricity costs less than to paying for it. Ancillary service demand response is a number of special services that make sure a secure operation in the transmission grid that have been originally provided by generators. RTCP Controls is a company that creates effective demand response programs.
http://rtpcontrols.com/public/dema_main.html
http://science.howstuffworks.com/environmental/green-science/demand-response.htm