Demand response uses smart technologies to lower peak electricity load by either shifting demand to non-peak hours or directly shaving peak demand. DR is a fast-growing market in which commercial and industrial customers are the primary providers of resources; however, DR helps heavy electrical consumers save energy and avoid demand charges, and it helps utilities save money and deter investment on expensive transmission and distribution lines. DR also has great potential to balance renewables by providing ramping and flexibility services to the electricity market. This capacity is increasingly important to electrical grids, as is the integration of more renewable energy.
Morton, Abigail; Wang, Yu; and Zhang, Wendong, "Willingness to Participate in Demand Response in the US Midwest: A Market with Great Potential?" (2021). CARD Policy Briefs. 32.