Expert Advice on Green Buildings

Demand Response Programs

What is Demand Response?

Demand Response programs (aka Energy Curtailment) pay businesses for reducing energy consumption when demand is greatest.

Property owners or companies that are looking for ways to develop incremental revenue streams, while building more efficient operations, may do so easily by working with a demand response provider to choose the right energy curtailment program.

What are the financial benefits?

The financial benefits of participating in a demand response can be significant. Programs pay significant sums of money in return for lowering demand for electricity because it is a cost effective way for utilities to balance supply and demand on the electric grid and ensure stability. Payments can be made on a pre-defined, regular basis or determined by actual performance.

Payments to participants of tens of thousands of dollars annually is not uncommon.

Additional benefits:

Demand response program participants may receive free power consumption monitoring equipment. This equipment helps businesses more closely monitor their energy usage and delivers valuable feedback which can help further reduce energy consumption year after year.

Why is Demand Response Important?

Demand for electricity has increased because of population growth, proliferation of computers and other electronics and increased air conditioning in home and office spaces. Utilities often cannot keep pace with demand during peak times, such as in hot summer months.

What are the Benefits of Demand Response Programs

- Develop Incremental Business Revenue Steams
- Help the Environment by Greenhouse Gas production caused by coal fired power plants producing electricity
- Ensure Reliable Electrical Supply