What is “Demand Response”? Well, according to the California Public Utilities Commission, it is “a resource that allows end-use electric customers to reduce their electricity usage in a given time period, or shift that usage to another time period, in response to a price signal, a finance incentive, an environmental condition or a reliability signal.” It saves them money over time. The price of energy is lowered and, in-turn, so are the retail rates.
The power is given to homeowners and business through power companies. The places are grids. The energy is placed in the grids and distributed accordingly. Only a certain amount is distributed to us though and we have to conserve it. The grids make it much easier to communicate between consumer and retailer. Demand response increases and decreases during times of high supply and/or low demand.
Sources:
- http://www.cpuc.ca.gov/PUC/energy/Demand+Response/
- http://science.howstuffworks.com/environmental/green-science/demand-response.htm
- http://en.wikipedia.org/wiki/Demand_response
