Every business buys power from the electricity grid. Under the right conditions, some businesses can be paid to reduce consumption during periods of peak electricity usage on the grid. This is known as demand response – and it can help businesses like yours offset energy costs.
Demand curtailment measures don’t need to be complex or significant. Turning off lights and raising air conditioning temperatures could be all you need to do. For greater impact and potential savings, you could have a more sophisticated approach with real-time adjustments to production processes or utilization of your on-site generator.
1. New revenue stream- Perhaps the biggest benefit to your organization is the financial one. System operators and utilities will provide financial incentives when you reduce or shift your demand away from the times when the overall demand for energy is high so that the stress on the overall utility grid is reduced. There are many different types of demand response programs, some voluntary and some requiring a firm commitment when called upon, with different incentive amounts.
2. Power reliability- Reducing demand improves the reliability of the grid. Less demand means less stress on energy transmission and distribution systems, which makes them less likely to fail.
3. Lower electricity prices- Reducing electricity when demand is highest often results in lower index prices. As demand for power decreases, less efficient and often more expensive forms of electricity generation are not needed, which helps keep energy costs in check.
NextEra Energy Solutions LLC is a subsidiary of NextEra Energy Services Holdings LLC and NextEra Energy. ESCO (Energy Service Company) projects within NextEra Energy Services companies service territories are conducted by NextEra Energy Solutions.