Utilities and ISOs use demand response to reduce consumption when electricity is expensive and demand outpaces supply — usually on hot days when air conditioners and cooling equipment are running in most facilities. By working with their customers to control energy use, utilities and ISOs save money by eliminating the need for additional peaking power plants, which typically run only when electricity use spikes. Customers reduce costs as well by shifting consumption to times when prices and rates are lower.
Demand response also helps utilities avoid disruptive brownouts and blackouts. And it enables large-scale renewable energy adoption by absorbing the variability that comes with solar, wind and other sustainable resources.
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