Automated demand response (ADR) is an alternative to building more power plants in order to accommodate an increased demand for capacity. ADR uses automation systems to communicate signals from utilities to energy-using devices that causes them to turn off during periods of high demand. When the utility anticipates peak demand, it sends an alert to the ADR system, which then reduces energy use by changing indoor temperatures or turning off/dimming non-essential lights, for example.
This process thus reduces the energy load, or the amount of energy used by customers, and thus reduces prices during peak periods while ensuring that the service providers can produce enough electricity to meet the market demand. It not only saves customers money, but it also reduces energy consumption overall and adds to a building’s energy efficiency.