Demand Response

Demand response is a system of electricity supply and demand management that involves consumers actively participating in the electricity market. It is a two-way communication between the utility and the consumer, where the consumer is able to respond to changes in the electricity market in real-time. This response can be in the form of reducing electricity consumption during peak times, or increasing electricity consumption during off-peak times. This helps to reduce electricity costs for the consumer, while also helping to reduce the strain on the electricity grid. Demand response is becoming increasingly important as more renewable energy sources are integrated into the electricity grid, as these sources can be unpredictable and unreliable. By having consumers actively participate in the electricity market, it helps to ensure that the electricity grid remains balanced and reliable. Demand response is also beneficial for the environment, as it reduces the need for electricity generation from fossil fuels, thus reducing emissions.