How Generators Help ‘Demand Response’

September 29, 2021

Power outages are becoming more of an increasing issue throughout the United States. Some factors contributing to the outages include an expanding population, higher electrical demands, and limited power grid capacities. To counterbalance the power struggles, commercial and industrial companies look to Demand Response programs.

Demand Response (DR) is also known as Demand Side Response (DSR) and functions to reduce demand on the utility suppliers during an emergency. By allowing the local electric utility (usually an Independent System Operator [ISO] or regional electric company) to spontaneously – and remotely – use onsite generators, some (or all) of the grid’s load can transfer to them. Load reduction can also be achieved by working with commercial and industrial automation systems. These systems work to reduce loads by minimizing lighting, HVAC, and other mechanical operations.  

On average, Demand Response is used up to four times per summer or four hours per emergency. The program allows organizations to set up a no-risk, no-cost opportunity to counterbalance the cost of a stationary generator. Those who choose to participate can save on energy costs, earn money, and help create reliable electricity throughout their city. In turn, this helps prevent black- or brownouts. 

By allowing their local electrical utility to curb their power consumption (when in high demand), Demand Response program participants receive recurring capacity payments in addition to additional energy payments based on their performance.

For example, a customer using a 300 kW natural gas generator could earn $4,000 during enrollment and up to $3,000 per year depending on peak energy they produce.

Natural gas generators are the best option as they are factory-certified to comply with the EPA’s standards and are allowed to be used in non-emergency situations. Since Demand Response qualifies under those regulations, the generator owner does not need to apply for a generator emissions certificate or obtain emissions testing.

For more information about implementing generators for Demand Response, contact State Electric Company today.

State Electric Company is a leader in the electrification of the nation. Our highly educated and experienced team of professionals uses industry-leading software technology and has partnered with manufacturers to deliver affordable solutions for all your electrical needs. With our combined, extensive knowledge in renewable energy sources through solar and battery storage, the team at State Electric works together to provide customers, large and small, with efficient electrical solutions. We specialize in smart electrical panels, EV chargers, battery storage, microgrids, and emergency generators with automatic transfer switches to ensure that all your energy needs are affordable and safely met. Contact us today to learn more about our services.

Written by the digital marketing staff at Creative Programs & Systems: www.cpsmi.com.