Programs that pay power customers to reduce their electric loads are expanding and becoming more sophisticated. Called demand response (DR), this option is becoming available as more so-called smart meters (needed for the process) replace mechanical meters, according to an article from Building Operating Management on the FacilitiesNet website.
Unlike demand-side management programs that pay customers to permanently reduce power consumption (i.e., kilowatt-hours) through energy efficiency projects, DR programs pay them to temporarily reduce the speed (i.e., kW demand) at which they are using power. Many facility managers are cashing in on opportunities to adjust their hourly electric loads while maintaining full building services.
DR programs have been available in some areas for over a decade. But several advancing technologies and issues are making DR programs more feasible and economically desirable, bringing options to customers that previously found DR too challenging or unprofitable to consider.
But why would a utility, whose business is selling power, pay a customer to use less of it?
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