Category: 📘 Glossary & Acronyms
Demand Response
Programs or actions that reduce or shift electricity consumption during periods of high demand in response to price signals or system reliability needs.
Demand response allows electricity consumers to temporarily reduce or shift their electricity usage when the electricity system is under stress or when prices are high.
Participants in demand response programs may include:
By reducing electricity demand during peak periods, demand response helps maintain system reliability and can reduce the need for additional generation resources.
Demand response resources may participate in electricity markets and can be compensated for reducing their electricity consumption during specific time periods.
An industrial facility may temporarily reduce production during a peak demand event in exchange for financial compensation through a demand response program.
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