Demand response is a strategy for reducing energy demand when it is not needed. By participating in commercial demand response programs, business customers help ensure the reliability of their energy supply by reducing the amount of energy they use during peak demand periods. Demand response helps to reduce the strain on the energy grid and promotes a more sustainable energy future. As the climate crisis continues to worsen, there is an increasing need for the energy grid to reduce the use of fossil fuels. The energy savings from these products and services reduces energy demand and, in turn, reduce the amount of energy needed from fossil fuels. This change reduces the emission of greenhouse gases, such as carbon dioxide, contributing to climate change.

Getting customers on board

Commercial demand response programs offer a variety of benefits to customers, including financial incentives, operational planning, and the ability to control energy use through automated systems. Some programs offer rebates for energy-efficient upgrades, while others provide funds for energy efficiency programs and renewable energy projects. In some cases, demand response programs help businesses reduce their energy use during peak demand periods and avoid costly blackouts. This helps to promote a more sustainable energy future for businesses and communities while providing a reliable and cost-effective way for customers to reduce their energy consumption.

The most generic form of commercial demand response is the energy savings response program, which allows businesses and large industrial facilities to reduce their demands for electricity during peak periods when prices are usually highest. One such example is the commercial energy efficiency program run by First Solar, a large-scale solar power producer. Through the Commercial Demand Response Program, businesses that participate in the program reduce their energy consumption when it is not needed by purchasing energy at above-market rates. By participating in the program, businesses help to reduce the amount of energy that First Solar must produce from fossil fuels. AGL is another commercial demand response provider. The company is able to offer a number of programs that help reduce the amount of energy used during peak demand periods. One of the most popular programs that AGL offers is Commercial and Industrial Demand Response. This program is able to provide customers with the ability to activate a 250-kW curtailable load and 250 kW of back up generation. The ability to activate this capacity helps to reduce the amount of energy used during peak demand periods. This flexibility helps reduce the strain on the energy grid, which in turn helps to reduce the emissions produced by the energy grid. The program is able to provide additional benefits to customers in the form of energy efficiency programs. For example, the program was able to earn over $100,000 in additional revenue for a data center in Victoria.

Driving energy efficiency programs

As technologies have pushed the boundaries of what was once thought possible, so too has commercial demand response. This technology allows companies to reduce energy consumption during peak times and create more demand for energy supply during low-demand periods. NRG is one of the largest commercial demand response providers in the world. The company is able to offer a number of different demand response programs to help reduce the amount of energy used by customers. Their service includes programs that activate backup generators, chillers, and pumps. The company also offers energy efficiency programs that help reduce the demand for energy during peak demand periods, which helps to reduce the strain on the energy grid. This also helps reduce the amount of emissions produced by the energy grid. The combination of these programs provides customers with a wide range of opportunities to participate in the demand response industry. Longer-term, new power plants do not have to be built to ensure that the power supply is able to meet the demand. It will also reduce the amount of fossil fuels used to provide power to customers, which will help reduce the impact of the climate crisis.

Johnson Controls, a manufacturer of electrification systems, also uses demand response to help the energy grid reduce its emissions. Through its GridConnect® platform, Johnson Controls is able to provide commercial customers with the ability to control their energy use through smart technology. This technology helps to reduce the amount of energy used during peak demand periods, which helps reduce the strain on the energy grid. It also reduces the amount of emissions produced by the energy grid.

Towards a sustainable energy future

The commercial and industrial demand response industry is expanding at a rapid pace. The demand response industry is projected to grow to $1.1 trillion by the year 2030. Programs such as energy savings response and demand response are used in order to optimize demand for electricity while also reducing the risk of volatility in pricing and demand levels. A recent projection by the Lawrence Berkeley National Laboratory showed that demand response programs could potentially save the United States $2bn per year in energy costs. This has a direct impact on the environment, as these same power generators need to work less in order to meet demand.

Over time, the integration of renewable energy will be able to replace the use of fossil fuels, which in turn reduces the impact of the climate crisis. This is a reflection of the growing role that demand response is playing in the fight against climate change. The more customers that are able to take part in demand response, the greater the impact they will have on the power grid. The renewable energy company, Enphase, provides a notable example of how demand response can drive renewable energy in its business model. Enphase is able to use demand response to generate revenue and offset the cost of renewable energy. Over time, the demand response industry will become an even greater mobilizer of renewable energy, which in turn helps to further reduce the emissions produced by the energy grid.