provides an opportunity for consumers to play a significant role in the operation of the electric grid by reducing or shifting their electricity usage during peak periods in response to time-based rates or other forms of financial incentives.[1]
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is the reduction of the consumption of electric energy by customers in response to an increase in the price of electricity or heavy burdens on the system.[2]
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[t]he reduction of customer energy usage at times of peak usage in order to help address system reliability, reflect market conditions and pricing, and support infrastructureoptimization or deferral.[3]
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Overview[]
The smart grid and demand response are intrinsically linked in many areas of application. Many of the benefits associated with investment in the smart grid, such as better consumer management of electricity usage in response to prices or signals from grid operators, are, at their core, demand response actions. In turn, investments in some smart grid technologies, such as smart meters, help enable the demand response potential.