Demand/Response is a system that electrical companies can use to prevent blackouts during events where the demand for power exceeds the grid’s supply.
One example of a Demand/Response system is the system used by Pacific Gas and Electrical, or PG&E for short. Thier system causes certain companies to make small reductions in their power usages during D/R events. Examples of the things they do is reducing nonessential lighting, especially in areas that dont need it, turning off decorative things like fountains that require alot of power, reducing the number of elevators working at once in an office, or running fewer machines in a factory. All these changes are relatively minor to the companies concerned, and the companies who chose to take part are given payouts from PG&E.
This system helps to prevent problems like blackouts which could be quite harmfull to the bussinesses mentioned above. For example, computer data could be lost, food would go bad, no products would be produced instead of slightly fewer, and an entire building could go dark instead of just some of the nonesential lights.
For a good look at what PG&E’s system is like, you can go to this link: