Demand response encourages businesses to shift their electricity use from peak hours to off - peak hours to
reduce demand on the grid while reducing their energy costs.
Both strategies have been shown to increase the rate of daytime charging, which is what utilities want because that is when there is often
less demand on the grid.
This level of electricity reduced the
metered demand on the grid by about the same amount, suggesting that the total solar share of gross demand probably exceeded 50 % during the mid-day hours.
When
demand on the grid begins to exceed supply, the grid drops below its normal operating frequency — 50 Hz in the UK, 60 Hz in the US.
Many homeowners have started installing smart lights, like Philips Hue and GE Link bulbs, to
decrease demand on the grid (and their wallets) and promote green living.
Optimizing energy usage allows us to reduce
demand on the grid strategically, ultimately reducing the peak level of demand when the grid is most strained and expensive to run.
The agency effectively ordered energy markets to pay demand response resources the same market price paid for generation if the demand response resource is economical and can help balance supply and
demand on the grid in real time.
The utilities have been agitating against solar PV because it is
reducing demand on the grid, particularly in daytime hours when generators could normally generate higher revenues from increased demand.
The relatively small changes that do occur are well within the capabilities of existing systems for balancing supply and
demand on the grid.
The autonomous appliance reaction lowers
the demand on the grid system for about 5minutes, allowing secondary response systems to kick in.
But another frontier also beckons, and that's localized power production that reduces
demand on the grid.