Demand Response (DR)

Demand Response (DR) is the controlled adjustment of electricity consumption in response to:

  • Price signals, or
  • Dispatch instructions from a system operator or aggregator

Its purpose is to support system balancing, reduce costs, and improve reliability.

If baseline demand is :

where is the change in demand induced by DR.

Role

Electricity systems must satisfy:

DR shifts part of the balancing responsibility from generation to demand.

Key Idea

DR makes electricity demand ==flexible and controllable==, allowing it to be treated as a system resource.