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A demand response program pays companies that reduce the amount of energy they use. These energy reduction programs not only help the business through cost savings, but they also help the entire community.
This article will cover five advantages to a demand response program and how it can help your business. Keep reading to learn more.
- Receive Advantage Notice of Power Outages
When your business signs up for a demand response program, you will be first to know about power outages in your area. Companies can schedule their operations around these outages and protect their facilities from potential damage an outage may cause.
This also helps the electricity grid operator. Electricity grids have to balance supply and demand to avoid damage. A demand response program avoids the grid operator from incurring a large expenditure to make extra capacity at peak energy consumption times.
- Some Programs Pay Companies to Save Money
You heard that right. If a business reduces its energy demands it can get paid. This is really a win-win for the company and the energy supplier because there will be more energy available to supply to others during peak times and the company will save money on its energy bill.
- Improve Power Grid Reliability
When you reduce the amount of energy your company uses it will also increase the reliability of the power grid. Why? Because less demand placed upon the power grid will ultimately make it work better and become more reliable for all energy users in your community.
Less demand means less stress on the distribution and transmission systems, which ultimately makes them less likely to fail.
- Lower Wholesale Prices
Reducing energy consumption during peak times can often lead to lower wholesale prices. This isn’t always the case but it usually holds true.
Reducing energy demand reduces the need for more costly electricity generation. The energy companies can then use less expensive methods of obtaining energy and that could help lower the wholesale price and put more money in your pocket.
- It’s Good for the Environment
Lastly, a demand response program shifts electricity consumption away from peak times and toward more desirable times. Studies have also shown that demand response programs that cycle residential appliances like air conditions and water heaters can decrease overall electricity consumption, sustainability, and increase efficiency.
By using a demand response program we can also decrease our dependence on fossil fuels. Generally speaking, the power plants that utilities turn to for energy production during peak times are less efficient than the plants that run throughout the day. By reducing our peak-time energy consumption we can reduce our overall carbon output.
If we implement more demand response programs they could help us avoid building more plants that run on fossil fuels and help us focus on renewable energy generation. Learn more about the benefits of a demand response program in this link.
The Future is Here: Demand Response Program
There are many reasons why a business would like to participate in a demand response program. This article lists five benefits to help you determine if a demand response program would be something worth considering.
If you enjoyed reading this article, be sure to read our other business and finance articles next.
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