Demand Response programs pay companies to curtail their energy consumption during extreme weather or emergency events. Customers are paid to do so monthly whether or not events are ever called.
Although there are many different types of demand response programs, the most common opens customers to the possibility of emergency events just during the summer months. Events typically occur once or not at all each summer. However, customers are required to curtail in one annual test if no events are called.
There are two primary types of Demand Response candidates:
- Companies with backup generation
- Companies who can shut down operations for 2-6 hours without detrimental impact