Demand Response

A demand response program can serve as an easy source of extra revenue for your facility.

What is demand response?

Demand response is a program that gives you quarterly payments for voluntarily reducing your electricity usage during times of grid stress or high energy prices.

Why is demand response important?

Sometimes, the demand for energy outpaces the grid’s ability to supply it, which leads to brownouts or blackouts. Demand response plays a critical role in grid reliability and facility resilience while helping to offset the production and consumption costs of electricity.

Instead of producing more energy at great expense to consumers and the environment, the grid operator can offset the imbalance of supply and demand by reducing the amount of electricity being consumed.

Who is a good fit for demand response?

Demand response is an ideal solution for large energy users that can curtail at least 300 kW. Some sectors that find great success in the program are:

  • Education
  • Manufacturing
  • Healthcare
  • Hospitality
  • Commercial real estate
  • Government

We proudly partner with CPower, an industry leader in demand management services, to provide you with the best possible demand response program options in the PJM market.

LEARN ABOUT CPower

How Does It Work?

Enrollment

Your energy advisor helps you enroll in the program with CPower and determine how much electricity you’re willing to curtail in the event of a grid emergency.

Test Event

There is a one-hour test event held at the end of June to help you identify how you can curtail energy usage in your facility.

Data Collection

In the months following the test event, your curtailment data from the test event is analyzed to determine your payment amount.

Payments Issued

You receive quarterly payments from the grid operator – even if a grid emergency is not called.

Demand Response FAQs

Yes. Demand response is a year-round program, which means there is a summer (June – October) and winter (November – April) participation season. However, if your facility has no ability to curtail in the winter, CPower can customize the program so you can only participate in the summer.

Yes. There is a single, one-hour test event at the end of June. We will give you multiple weeks’ notice and help you identify curtailment opportunities to help you maximize your payouts.

No, there are no out-of-pocket penalties for not performing. Zero performance simply earns zero dollars. If you don’t perform, your expected revenue will be reduced by the amount of under/non-performance.

Earnings are determined based on the utility your facility is located in. Depending on the utility, clients can earn between $50,000 and $75,000 per year. Additionally, you are eligible for an energy payment if an emergency event is called. The payments range from $1,000 to $1,849 per megawatt-hour curtailed.

May 1 is typically the deadline for enrolling in the next demand response program. However, since there is a limit to the amount of capacity that can be claimed, enrolling earlier ensures a spot for you in the program.