There are two primary ways to ensure that there is always enough electricity available to meet demand:
- Build enough electric generation capacity to satisfy the maximum expected demand plus a comfortable reserve
- Find better ways to manage energy use and spread that use more evenly throughout the day
Building more power plants is time-consuming, wasteful and expensive, especially if they’re only needed during a few hours each year.
A proven alternative is Demand Response (DR), whereby electricity consumers are encouraged to reduce their electric demand at critical times. These DR systems typically employ dynamic pricing and tariffs, utilizing mechanisms such as contractually obligated and voluntary curtailment, direct load control and cycling, and payment incentives.
During peak hours on certain days, demand for energy increases. For example, periods of extreme heat throughout the Eastern US in July 2010 escalated power consumption for services such as air conditioning and cooling, causing significant increases in electricity demand and prices. When implementing Demand Response, participants reduce and shift their consumption out of those periods to times where demand (and consequently, the price of electricity) is lower, resulting in greater system efficiency and lower costs for everyone.
EnergyConnect and Johnson Controls deliver a unique solution via the GridConnect Integrated Demand Response platform, giving subscribers the visibility and control to effectively participate in DR programs year round to maximize their energy savings and earnings .