Increasingly, demand response has been utilized by companies to manage energy costs. With the expertise and in-depth marketplace savvy of New York-based energy consultant Good Energy, commercial and industrial energy consumers can save money through flexible demand response models.
Demand response is when a business removes a portion of their energy consumption from the grid during periods of high energy demand. This energy reduction can be done by activating an emergency generator or by switching off lights or other energy-consuming equipment.
A portion of the fees electricity delivery grid operators collect from all energy users is dedicated to ensuring there is adequate capacity available, even in times of peak demand or an unforeseen event, such as a storm. Availability to this excess energy capacity helps prevent blackouts. Businesses that offer excess capacity can receive payments through an interface provider, such as Good Energy. Such payments can be substantial, but will fluctuate from region to region, and from period to period.
“There are many ways to participate in demand response, and different programs are available in different parts of the country,” says Good Energy Managing Partner Javier Barrios. “Good Energy has extensive experience creating such programs for companies across the country.”
Energy curtailment specialists, such as the experts at Good Energy, assist companies in developing such demand response systems. Demand response was often used at peak demand times or after power outages, when the power grid was less stable. However, more and more businesses are using demand response as an on-going, everyday way to save money.
Utility companies are also finding new demand response models, which means commercial and industrial energy customers may have additional ways to save money. Some these emerging demand response innovations include:
Remote energy storage – Utility companies are exploring programs that provide energy storage units at customers’ sites. New types of storage include a thermal storage battery, which costs about half a lithium-ion battery.
Non-wire alternatives – Utility companies have forgone system-wide demand response and created targeted demand response. For example, Central Hudson developed its Peak Perks program aiming to defer 16 megawatts of capacity by 2019. The program has already been lauded for its flexibility and benefits to commercial and industrial customers.
Customer engagement – Getting customers to participate in reducing demand has also been shown to be successful. Use of smart thermostats, which can be controlled remotely through a phone app – has shown to engage customers in reducing peak demand.