What is demand response? Demand response is a mechanism implemented to conserve electricity when the demand is high, such as afternoons during the day, (when many Americans are getting home from work, turning on lights, heat and other electric items) so if possible events (such as natural disasters) occur there is enough saved energy to somewhat manages the damage. It balances out all of the excess electricity used by reducing use for small increments of time. Simply put, constant use of electricity in excess can cause blackouts and meltdowns of the power-grid, and electrical suppliers in America, such as Pacific Gas & Electric, are beginning to offer incentives to businesses or households that are willing to commit to reducing their electricity use during peak times, everyday. (Here is a great link from EnerNOC explaining demand response: http://www.youtube.com/watch?v=xgFSUwwZdpo) This is an AWESOME explaination of Demand Response by Boston based company, EnerNOC!!
When and why did this concept become popular? While demand response is still a budding concept in the U.S., it has been used in the U.K. since 2009, and produced successful back-up energy rates. Canada is also beginning to test demand response in some provinces aiming to become more sustainable. In 2005, the U.S. began to research the possible outcome of enforcing demand response, weighing the positives and the negatives. As described in Wikipedia:
“The report estimates that in 2004 potential demand response capability equaled about 20,500 megawatts (MW), 3% of total U.S. peak demand, while actual delivered peak demand reduction was about 9,000 MW (1.3% of peak), leaving ample margin for improvement. It is further estimated that load management capability has fallen by 32% since 1996. Factors affecting this trend include fewer utilities offering load management services, declining enrollment in existing programs, the changing role and responsibility of utilities, and changing supply/demand balance.”
To further the use of demand response, the Federal Energy Regulatory Commission created a required compensation for electric providers of demand response in March 2011. This concept of compensation has proven to be somewhat taboo, due to the reward to companies for what should become a natural commitment. Eventually, the government will not be able to provide compensation after all of the electric providers have embraced demand response, thus causing an eventual down-fall of the concept (possibly).
How could you start to use demand response?
While the concept is slowly growing on a national level, there are ways that individuals can help reduce the demand of electricity during peak times: use less electricity, when you would usually be using the most! Also, check in with your utilities provider, and see if there is any deal they have to reduce your payments by using the demand response mechanism.
http://www.pge.com/mybusiness/energysavingsrebates/demandresponse/whatisdemandresponse/
http://www.healthtechzone.com/news/2012/01/26/6079989.htm
http://en.wikipedia.org/wiki/Demand_response
http://en.wikipedia.org/wiki/Load_control_switch