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What Is Demand Response and How Does It Affect Your Business?

If you're a business owner, you should be asking yourself "what is demand response?" 

Similarly, you should be asking yourself what is your energy usage like and how can you save on energy. 

This article is intended to help you gain knowledge about what demand response is and how it can affect your precious business. 

What Is Demand Response?

If you want a solution to wasting energy and you want control over how and when energy is being used you should know what demand response is and how it may help your business.

Demand response grants business owners the ability to control their energy usage when they think is appropriate. The programs encourage consumers to limit energy use during high-demand times.  

Demand response programs give the user more control over the electric grid. If you know the peak times for using energy in your business, you can change the energy exertion based on peak times for production. 

The use of demand response programs helps to decrease the cost of electricity for wholesale markets, and instead, helps to decrease your retail rates. 

It also takes the strain off of the grid so everyone can enjoy its benefits without fear of system failures.  

Who Uses Demand Response?

Demand response programs are typically used by electric systems planners or operators to help control the supply and demand of energy.   

Another large user of demand response programs would include anyone who uses large amounts of energy. From commercial industries to healthcare providers demand response programs can be extremely beneficial. 

How Can Demand Response Programs Affect Your Business? 

It is important to note that demand response programs are also known as demand management programs. 

Now that you know what a demand response program is, you may be wondering how it could be beneficial to you and your business. 

We have compiled a list of how demand response programs can affect and even improve your business. 

1. Reduce Energy Costs

Using a demand response program can no dought help you and your business to cut down on costs. With new, environmentally friendly ENERGY STAR appliances, your business can become more effective, while also saving you money. 

2. Environmentally Friendly 

With a demand response program, your business will be able to cut down on energy consumption.

You can feel good knowing that when you tell your customers you're environmentally friendly, you really are! For some clients, knowing they're investing in an eco-friendly company is a must.

3. Promotes a Partnership

To use a demand response program, your business also has to work closely with energy utility companies. Using a demand response program helps to prevent a blackout or brownout, thus looking out for and helping your business' community.

4. Increase Market Value

If your business utilizes a demand response program, it will become an even more productive building. When your business uses less energy it will be a modern and up-to-date workplace. 

5. Reduce Demand

When utilizing a demand response program, helps improve the reliability of the grid. After using the program, there is less of an energy demand, meaning there is far less of a chance that the system will fail. 

Cost Considerations of a Demand Response Program

As a business owner, you have to juggle many costs: including utility costs. However, with a demand response program, you're able to have more control over your electricity bill. 

Your business, in the past, may have been asked to reduce electricity usage. If you are unable to meet those demands, your business may be penalized with fees for underperforming.

With control over your energy, you can be free of these fees with your new-found control over your energy expenditure. 

Being conscious of when to utilize your demand response program is crucial. The program often needs to be used at specific times of your business' operation. It is important to assess when it is and is not appropriate to reduce energy usage for your business. 

Your decisions when controlling your energy should not inhibit your business' daily operation. 

Demand Response and Utilities

When using a demand response program, utilities are provided to various establishments and institutions, including commercial and industrial consumers. 

Utility companies work with businesses to pinpoint trends and then supply energy accordingly. When there are hot summer days and freezing winter nights, the energy grid is at its peak. 

Some utilities have back up power, known as peaker plants. These power plants cost a lot to build and run, thus, expensive. 

That's why non-wired demand management programs are so beneficial for not only saving energy but for saving money as well in times of tight energy supply and demand. 

Common Misconceptions on Demand Response Events 

  • "Demand response requires manual adjustment": This is untrue because the entire process can be an automated one. 
  • "Demand management will be disruptive to my business": A typical event only happens a few times a year and only for two to four hours at a time. At Lone Star, we work with clients to develop an appropriate strategy for your business. 
  • "Customers may take on financial risk when using demand response": This is false because most of the time when working with an established partner, it's probable they will take on the financial risk. 

What Is Lone Star Demand Response LLC, and its Services 

Lone Star Demand Resources (DR) provides Demand Response to Texans. Its goal is to "eliminate overpriced services and provide fantastic ERCOT DR services. ERCOT means, Electric Reliability Council of Texas. 

Demand Response: Learn More

If you or your business wants to save money, energy, and the environment, you should consider adopting a demand response program. 

If you have more questions about what demand response is, if your business should utilize it, or Lone Stars services feel free to contact us!


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