Demand Response

In order to have a discussion on demand response I think that it is important to have you as the reader understand how demand response works, and the basics around the concept.  Because we live in the 21^st century we are surrounded by electronics, most of us myself definitely included can’t live without my cell phone, lap top, and can’t even imagine living without electricity.  Electricity is where demand response comes into play. “ When you turn on an appliance, you expect immediate results: you don’t want for a light bulb to come on after you’ve flipped the switch. Electricity isn’t stored in a tank in your yard, so when you need it within the immediate response this is where the power grid comes into play”(Maria Trimarchi, How Demand Response Works).  This immediate response that we are all so accustomed to is partially because of demand response.

Essentially the minimum of energy and electricity that we all use on a daily basis is what the base load from the ‘grid’ handles.  “When you flip a light switch, electricity travels in an instant to your home and the bulb grows- that’s called demand. When millions of electricity customers all turn on their air conditioners after work, it increases the demand load on the grid”(Maria Trimarchi, How Demand Response Works).

The demand response is important especially in the 21^st century because of our use of electricity, and how some can have the tendency to overuse electricity. I know that I have been guilty of leaving a light on from time to time when I leave the room or leave my apartment. This overuse of electricity is what can overuse the demand load on the grid, which can lead to a power outage.  “ The power grid supplies only the electricity we ask for, thought, and it’s up to us to practice energy conservation.”( Maria Trimarchi, How Demand Response Works).

Demand response is not only important for individuals to be aware of but is also helpful for a business.  “Demand response can be a powerful tool in a company’s overall energy management strategy. By participating in electricity demand response programs, companies can earn significant revenue while simultaneously reducing energy expenses through lower consumption”( Electricity Demand Response).  This chart will be helpful in viewing where the typical demand response of a company is.

Finally there is an economic influence in demand response with electricity. “The economic benefit of an increase in demand response is the reduction in the total supply-side plus demand-side costs of meeting consumers’ demand. For example, if peak DR is imporved by making it easier and cheaper to run back-up generation and turn off electricity-using industrial processes when prices are high, demand and hence the need for costly supply during high-priced peak periods will be reduced”(Larry E. Ruff, PhD, Economic Principles of Demand Response in Electricity).

Trimarchi, Maria.  “How Demand Response Works”  05 November 2008.  HowStuffWorks.com. <http://science.howstuffworks.com/environmental/green-science/demand-response.htm>  30 January 2012.

“Electricity Demand Response | Backup Generation | Reserves, Capacity Programs | Peak Load, Demand Side Management | Energy Efficiency.” Energy Management | Energy Demand Response | Cpowered.com. Web. 30 Jan. 2012. <http://cpowered.com/electricity-demand-response.php>.

Ruff PhD, Larry E. “ECONOMIC PRINCIPLES OF DEMAND RESPONSE IN ELECTRICITY.” Oct. 2002. Web. 30 Jan. 2012.