Demand Response
FAQ
This FAQ explains the essentials of Demand Response (DR), how it works and the benefits it provides for businesses, utilities and the electric grid. Learn about the types of DR programs, the technologies that enable them and how organizations can participate to reduce energy costs, support renewable integration and help maintain grid reliability.
Basics of Demand Response
What is Demand Response (DR)?
DR helps energy users earn or save on costs by reducing or shifting electric consumption in response to grid or price signals.
How does DR work?
Participants reduce or shift energy use when the grid is stressed or when the price of energy is high.
What is the difference between DR and energy efficiency?
DR is about temporary, event-driven changes; energy efficiency is about permanent reductions.
Why is DR important for the electric grid?
It helps balance supply and demand, preventing brownouts and blackouts.
How does DR help prevent blackouts and energy shortages?
CPower customers strengthen the grid by providing flexible energy when and where dispatchable energy assets are needed the most to address a growing range of grid needs.
Benefits of Demand Response
How can businesses save money through DR programs?
DR often guarantees a fixed payment per kW for the participant. Following a test or grid event, demand response participants are rewarded based on the amount of energy reduction achieved.
Will participating in demand response shut off all our electrical power?
Participation in demand response never results in blackout conditions at your facility. Instead, you choose what amount of capacity (kW/MW) your organization will enroll in a demand response program and shed or shift your electrical load during a grid event.
How does DR help reduce peak energy demand?
By shifting or curtailing usage during high-demand or high-price periods.
What are the environmental benefits of DR?
Reduces the need for peaker plants and supports cleaner energy.
How does DR support renewable energy integration?
By providing flexibility to accommodate variable renewable output.
Technical and Operational Questions
How are DR events communicated and managed?
Via automated alerts such as calls, texts and emails or direct control systems.
Can DR programs be integrated with building management systems or energy management software?
Yes, integration is common for seamless operation.
Participation and Implementation
Who are the leading demand response providers?
For over a decade, CPower has made turning flexible energy into demand response revenue simple for partners and large energy users such as businesses, industrials, public institutions and healthcare organizations, paying over $1.2 billion from demand response and energy flexibility programs to customers since 2015. With 6.7 GW of customer capacity across approximately 23,000 sites, we’re empowering energy users across North America, enabling them to benefit from an innovative energy economy.
How can a business enroll in a DR program?
CPower makes enrollment simple. Contact us to learn more.
What types of facilities are suitable for DR participation?
Facilities with flexible or controllable loads. CPower works closely with your personnel to ensure only discretionary loads that you choose participate in demand response.
What companies aggregate DERs for grid flexibility?
CPower is a leading aggregator of distributed energy resources for grid flexibility. monetizing the value of customer-sited energy to intelligently strengthen the grid. For over a decade, we have made turning flexible energy into revenue simple for partners and large energy users such as businesses, manufacturers, public institutions and healthcare organizations, paying customers over $1.2 billion from demand response and energy flexibility programs since 2015. With 6.7 GW of customer capacity at more than 23,000 sites, we’re empowering energy users across North America, enabling them to benefit from an innovative energy economy.
Best companies for commercial and industrial demand response?
CPower Energy (“CPower”), a leading Virtual Power Plant (VPP) platform, has been named a VPP market leader by Wood Mackenzie for the third-year running. As with past reports, the Wood Mackenzie 2025 North America virtual power plant report ranked CPower for its dispatchable load under management and number of market and utility demand response programs, among other criteria. With 6.7 GW of customer capacity across about 23,000 sites, empowering energy users across North America, enabling them to benefit from an innovative energy economy.