Demand Response (DR) Explained
What is Demand Response? Demand Response (DR) when it comes to electricity is the behavioral or automated action of reducing energy usage at specific points in time, typically to reduce power costs.
Power Provider Distribution Lines - Example of overhead lines that bring power from the substation to point of service. These must be sized for the max demand.
Common DR Program Offers:
A Demand Response Program refers to an offer that a power provider has designed and approved budget to implement. There are two primary buckets a home owner can get “paid” for their enrollment.
Money / Rebates
Cheap Stuff / Tech
Money!! - Many power providers offer money ($$$) to participate in reducing energy usage at specific times throughout the year. This is strange right? Why would the power company be selling me energy, yet pay me to use less energy? Mind blown right. However its a simple supply and demand curve. As the demand for electricity increases, either during winter heating or summer cooling months, the price goes up. Our monthly rate never changes but the providers average all that out to come up with our small kWh rate.
Stuff!! - Other power providers offer free or heavily heavily reduced stuff. This includes things like water heaters, thermostats, HVAC systems, Smart Plugs, Motion Lights, LEDs, and many other newer home automation / energy efficiency hardware that is shared here on Smart Grid Marketplace.
Common Demand Response Strategies:
Air Conditioning
Water Heating
Space Heating
Air Conditioning Control - Traditionally done by cycling power to the outdoor compressor this is now done more strategically with smart thermostats like the Google Nest or EcoBee. Most electric providers will give a 50-100$ rebate off the purchase price of either thermostat. Typically the utility will change the seeing by 3-4 degrees, after pre-cooling the space, for 2-3 hours 5-10 times a summer. In addition to the upfront savings there can also be a monthly rebate on your bill.
Example: Xcel Energy Saver Switch Program - Comverge / Scientific Atlanta 205 with a Cannon LCR-5001 paging radio. One way cycling on/off controls.
Water Heating Control - Simple on/off control of electric water heaters is done by installing a switch that can be controlled remotely to cut power. This is one of the best programs to enroll in, simply because of the fact that water heaters are typically large tanks and it takes a lot to notice any control. Typically the utility will cycle the water heaters off for 1-4 hours early evening.
Example: Aquanta Water Heater Controller (Smart Grid Marketplace Blog Post Link)
Space Heating Control - Simple on/off control of electric strip heating is done by installing a switch that can be controlled remotely to cut power. This is primarily in the northern territories for winter peaking power providers. Typically the unit will cycle the heating element off and on every 15-30 minutes for 2-4 hours.
Newer Programs:
Electric Vehicle Charging
Residential Solar
Residential Battery
Electric Vehicle Charging - Electric vehicle charging will use more energy overall compared to any other common program device. There are still many options for Electric Vehicle programs. Today, this is typically done with the legacy mindset of sub-metering and a dedicated rate. However, going forward these chargers will have to be enabled with two way communication for scheduling and optimizing the charge sessions.
Example: Austin Energy Charging Program (Smart Grid Marketplace Blog Post Link)
Residential Solar - Still a very high up-front charge, however the power provider will typically offer a net metering solution that enabled the home to provide power back to the power provider! More advanced programs include smart inverters that can change their power flow to support different voltage or demand issues.
Residential Battery - Typically, as in 95% of the time these are tied and designed with residential solar. Adding a home battery to the solar configuration allows for the house to maximize the solar generation over a greater portion of the day. More advanced programs include smart Battery Management Systems (BMS) that typically also connect to a smart inverter.
The table below lists a number of commonly controlled and supported home devices, such as thermostats, EV chargers, and water heater controls.
| Type | Make / Model | Link to Amazon |
|---|---|---|
| Thermostat | EcoBee | Check Price |
| Thermostat | Google Nest | Check Price |
| Thermostat | Emerson Sensi | Check Price |
If this high level overview of common Demand Response devices and offers is helpful, click into the title of each to get more information posted to the Smart Grid Marketplace blog.