Glossary term:
Demand response

Demand response refers to the practice of adjusting or modifying the power consumption of an electric utility customer in order to align it more closely with the supply and demand dynamics of the electricity grid. It involves changing electricity usage patterns to respond to fluctuations in electricity supply, grid conditions, or price signals.

The objective of demand response is to balance the demand for electricity with the available supply in a more efficient and cost-effective manner. By adjusting their electricity usage during peak demand periods or when there are grid constraints, customers can help alleviate strain on the grid and reduce the need for additional power generation capacity. This can lead to improved grid reliability, stability, and reduced electricity costs.