Whether you are looking to track your facility’s energy consumption or seeking a new form of revenue, chances are you have questions about participating in a demand response program. You have heard that your business could get paid by temporarily reducing its electric usage, but how exactly does it work? How does your company begin the process? And are the benefits worth it? Below are the top 10 questions customers have regarding demand response programs.
10. Why is demand response an option for grid stability? When the electric grid is experiencing high demand, utilities have a couple options to stabilize it. They can purchase electricity from outside the region, but transmission can be costly. They can start up old “stand-by” power plants, but these are inefficient and harmful to the environment; or they can rely on demand response, where participants are called upon to temporarily reduce their electric consumption to stabilize the grid safely and effectively.
9. What will happen if the utility does not produce enough electricity? The most obvious result is a blackout, which leaves everyone in the region in complete darkness. Utilities will sometimes reduce voltage until a stockpile of electricity builds up again to prevent a blackout. This reduction voltage by the utility is a brownout.
8. Why is it so significant to avoid blackouts and brownouts? Blackouts leave everyone without electricity, but brownouts can lead to repercussions. Fluctuations in voltage can be hazardous to businesses, causing extensive damage to a facility’s equipment, which can cost thousands of dollars to replace.
7. Who qualifies for a demand response program? Any business or organization that consumes a considerable amount of energy could participate. The most successful participants include manufacturing facilities, hospitals, healthcare facilities, commercial properties, schools and universities, data centers, large hotels, and shopping centers.
6. When and how often are events called? Demand response events are usually in the summertime when air conditioning units run. The number of events may vary yearly, but most events will only last a few hours.
5. What are the methods of reduction? Each facility will have a different reduction plan, but some successful methods include running on-site generators, reducing air-conditioning usage, and shutting off lights and large equipment.
4. How will we be notified to reduce our electricity? Notification sent via voice mail, email, fax, and a personal phone call from the enrolled demand response provider to designated contacts at the facility. These are sent out 10 minutes to 4 hours in advance, depending on your location.
3. What if we cannot participate in an event because it interferes with our facility’s operations? Different demand response programs will have requirements during an event. If you enroll in a reputable program, the consequences will be minimal. You get paid for what you reduce, so not performing will result in no payment.
2. Do we need to install any hardware to participate in demand response? An interval meter is needed to participate, but in most cases, the provider will install it at your facility at no charge.
1. How will my facility benefit from a demand response program? Participation does require some effort, but financial compensation is worth it and profitable for your facility.
To answer your questions on demand response and see how to participate in a program, contact Renodis at info@renodis.com www.renodis.com
