Demand response (DR) is a load management tool which provides a
cost-effective alternative to traditional supply-side solutions to
address the growing demand during times of peak electrical load.
According to the U.S. Department of Energy (DOE), demand response
reflects "changes in electric usage by end-use customers from their
normal consumption patterns in response to changes in the price of
electricity over time, or to incentive payments designed to induce
lower electricity use at times of high wholesale market prices or
when system reliability is jeopardised". The California Energy
Commission (CEC) defines DR as "a reduction in customers'
electricity consumption over a given time interval relative to what
would otherwise occur in response to a price signal, other
financial incentives, or a reliability signal." This latter
definition is perhaps most reflective of how DR is understood and
implemented today in countries such as the U.S., Canada, and
Australia where DR is primarily a dispatchable resource responding
to signals from utilities, grid operators, and/or load aggregators
(or DR providers). This book examines select experiences from the
U.S. and abroad corresponding to reduced energy usage through
demand response.
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