Practically speaking, electricity cannot be easily stored on a large scale.
As a result, supply and demand must remain in balance in real time.
Traditionally utilities have leveraged peaking power plants to increase power generation to meet demand. Demand response works from the other side of the equation – instead of adding more generation to the system, it pays energy users to reduce consumption. Utilities pay for demand response capacity because it is typically cheaper and easier to procure than traditional generation.
Demand response allows energy users of all kinds to act as “virtual power plants,” adding stability to the grid by voluntarily lowering their demand for electricity. Participants in demand response programs get paid for providing demand response capacity. BKE Energy, Inc. has channel partner agreements with a number of Curtailment Supply Providers (CSP’s). We work with commercial, institutional, and industrial businesses to identify ways for facilities to participate in demand response programs affecting little or no business operations, comfort, or product quality. Demand response energy reduction measures are customized for each facility and can include turning off lighting, air conditioning, pumps, and non-essential equipment. In some regions, facilities may participate in demand response by switching to backup generation, thereby reducing demand on the grid. A 1 MW drop for a three year season starting in 2016/17 in ComEd’s region, gross is worth over $133,000!
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