Demand response is a method of using technology and
incentives to lower the amount of electricity used by
customers. Reducing the amount of electricity used will
result in reductions of energy generation at times of peak
use and in times of a high market. The benefits of a
demand response program are an increase in the
reliability of the electric system as well as stabilizing the
price. One company in particular, Pacific Gas &
Electric or PG& E operate a demand
response program where incentives are offered to
business owners who decrease their facility’s energy
use during peak times where energy demands are
at their highest. The demand response program is necessary
because when the occasional bad storm, heatwave, or repairs to a
plant must be done, the potential for a negative effect on a region’s
supply and demand for electricity increases.
When then demand is high for electricity but the supply is short power interruptions can occur causing
both safety concerns and inconveniences for the public.Without demand response incentives more
power plants would need to be built, but the cost of construction and the negative impact on the
environment prove this option to be unfeasible and far from ideal.
The drive to become more energy efficient can be seen in all aspects of life every day. On
February 2, 2010, PR Newswire announced online that a National Town Meeting on
Demand Response and Smart Grid would be held in Washington D.C. on June 23 and
24, 2010. The National Town Meeting would be focused on implementing the National
Action Plan on Demand Response required by Congress in the Energy Independence
and Security Act of 2007. This meeting will feature round-table sessions where
business and policy developments pertaining to the usage of energy and solutions to
becoming more efficient.
Check it out!