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What is Demand Response?

Demand Response programs reward businesses for reducing electricity consumption during specific peak periods. This win-win approach lowers your costs while supporting grid stability.

These innovative programs create a symbiotic relationship between your business and the electrical grid. When demand peaks and the grid faces stress, participating companies temporarily reduce their energy consumption in exchange for financial incentives and long-term cost savings.

The beauty of demand response lies in its flexibility – you maintain control over your operations while strategically timing energy usage to maximize both economic and environmental benefits.

Peak Period Reduction

Lower consumption when grid demand is highest

Financial Rewards

Earn incentive payments for participation

Grid Support

Contribute to overall electrical system stability

The Business Case for Demand Response

Manufacturing companies participating in demand response programs have reported average annual savings of $50,000-$200,000 while maintaining full operational capacity.

Reduce Costs

Cut expenses by lowering usage during peak pricing periods and earn incentive payments for participation. Companies typically see 10-30% reductions in their electricity bills through strategic demand management.

Flexibility

Stay in control of operations while taking advantage of opportunities to adjust energy use strategically. You decide when and how to participate based on your business needs and operational requirements.

Sustainability

Support a more resilient grid and enable greater renewable integration, enhancing your company’s environmental profile. Demand response helps balance supply and demand without requiring additional power plants.

Strategies for Success

Participate in Demand Response Programs

Enroll in utility-sponsored programs that pay you to reduce usage during peak periods. By scaling back non-essential operations or shifting energy-intensive processes, you can unlock multiple benefits for your business.

  • Reduce Peak Load Contribution. Lower your facility’s impact during high-demand periods
  • Receive Direct Compensation. Get paid for every kilowatt-hour reduced during events
  • Lower Capacity Charges. Reduce costs for the next 12 months based on participation
  • Support Grid Stability. Contribute to reliable electricity supply during critical times with opportunity for savings during favorable market conditions.

Shift Energy Usage to Off-Peak Times

Reschedule energy-intensive activities when the grid is under less stress. This strategic approach reduces capacity charges while maintaining productivity and operational efficiency.

Adjust Production Schedules

Move energy-intensive manufacturing processes to off-peak hours when electricity rates are lower and grid demand is reduced.

Pre-Cool or Pre-Heat Facilities

Condition your building spaces before peak demand periods, using thermal mass to maintain comfort during high-rate hours.

Automate Overnight Operations

Schedule automated processes for overnight or early-morning operation when grid stress is minimal and rates are most favorable.

Start your demand response journey

Implement Energy Efficiency Measures

Improving your business’s overall energy efficiency can significantly reduce your PLC by lowering your baseline energy consumption. These improvements make it easier to manage your energy use during peak times, making PLC mitigation part of a broader energy strategy.

High-Impact Efficiency Upgrades:

  • LED Lighting – Reduce lighting load by up to 75% compared to conventional systems
  • HVAC Optimization – Modern systems use 30-50% less energy than older models
  • Building Envelope – Improved insulation and air sealing reduce heating/cooling requirements
  • Equipment Upgrades – Energy-efficient machinery reduces baseline consumption

Ready to Transform Your Energy Strategy?

Effective PLC management goes beyond just lowering energy bills—it enhances operational resilience, reduces environmental impact, and ensures compliance with energy regulations.

Our team of energy experts is ready to help you develop a customized strategy that meets your unique operational demands while controlling energy costs.

Get energy consulting help today