Our demand for electricity in the 21st century is ambitious, considering that the current electric grid was designed more than a hundred years ago. Enter the smart grid.
The smart grid is a modernised electrical grid which completely changes the game. It encompasses a variety of operation and energy measures. Demand response (DR) is one of them.
DR provides an opportunity to the consumer to reduce their electricity usage during peak periods and generate energy themselves. This leads to great savings in energy consumption and expenses.
DR programmes are being used to balance supply and demand. These programmes can lower the cost of electricity in wholesale markets consequently leading to lower retail rates.
As it is all about increasing flexibility and savings, advancements in technology are apparent. Technological advances are incorporated in both mass market and commercial & industrial (C&I) demand response programmes.
While developments are happening in both, the C&I market segment contributes to the majority of the total DR capacity.
Let’s look at what the numbers say.