October 2, 2006—High temperatures in early August resulted in record power demands across the country, but many utilities managed to avoid widespread power outages by using their demand response networks, reports the US Office of Energy Efficiency and Renewable Energy (EERE).
Customers participating in these demand response networks offer to reduce their usage during peak demand and are paid the market value of the electricity saved. This allows utilities to avoid using the most expensive generators, reportedly reducing demand to meet the power grid needs instead of increasing the electricity supply.
Demand response benefits all customers by lowering long-term electricity prices, says EERE. PJM Interconnection, which operates the power grid in a 13-state region from Illinois to Delaware, estimates that demand response resulted in price reductions of $650 million in energy payments for one week in early August.
Manual demand response systems have been around for years, but new technologies are allowing these systems to be automated, says EERE.
Companies that manage the demand response networks, including EnerNOC, Itron, and Comverge, monitor power grids and notify participating customers when demand response events are anticipated, in various ways.
As an example, Pacific Gas and Electric (PG&E) is providing its large business customers with an “Energy Orb” that glows, pulsates, and changes color to show when conservation is needed. The orb can be placed in a lobby or facilities manager’s office, and has an electronic chip that receives a signal every 15 minutes. When an event is declared, power use is automatically curtailed and widespread rolling blackouts are avoided, says EERE.
