Demand Response is fully supported by the ElectSolve MDM. The MDM is not a direct load or Demand Response control head-end but instead provides program enrollment, event scheduling, participant notifications, and measurement and verification of performance for Demand Response programs.
Demand Response (DR):
DR has many definitions and has been implemented in many different forms within the electric industry. Historically, DR has been focused on large industrial and commercial customer bases. Utilities have utilized DR as a contingency option to shed load during periods of capacity constraints used primarily by utilities as a mechanism to avoid “brown-outs” or “black-outs” and to avoid “black-start” scenarios.
DR in more recent years has become more focused on peak demand control. Utilities recognize that controlling and managing their “peak loads” can be an effective mechanism to manage the requirement for additional generation capacity. Essentially influencing customers to use less power which is contrary to past practices where utilities sought to grow Kwh sales. Capacity planners now focus on meeting the maximum expected load demand while at the same time, using demand management practices to minimize the requirement for new capacity to meet these demands. The electric system and generation capacity is essentially built to meet this maximum expected demand and if utilities can control this at current levels or reduce the demand then the utility can avoid some future rate increases and possibly reduce rates for customers.
Offsetting plant construction also reduces green house gas emissions which is a huge factor in current DR initiatives related to shaving peak demand.