Understand demand response programs — how utilities use them to manage grid peaks, how buildings participate, what BMS-controlled load shedding looks like, and how demand response integrates with battery storage and smart building systems.
Demand response (DR) is the voluntary or contractual reduction of electricity consumption by energy users (buildings, industrial facilities) during periods of peak grid demand, in exchange for financial incentives from utilities or grid operators. By reducing demand during peak periods — typically hot summer afternoons when air conditioning loads peak — DR helps utilities avoid operating expensive "peaker plants" and prevents grid overloading.
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