Demand response

Demand response, often shortened to DR, covers utility and market programs that pay or reward customers for changing how much power they draw from the grid when the grid needs it. Some DR programs are built into tariffs, such as peak pricing events. Others are separate programs like capacity or demand bidding, and in California many of those are being phased out. Newer programs let commercial customers join the wholesale market with distributed energy resources, which handle grid interaction automatically so nobody has to shut equipment down by hand. Utilities also contract with providers of distributed energy resources to build virtual power plants. In these, battery storage at customer sites earns DR revenue on top of bill savings. Running residential DR at scale means tracking customer enrollment, home area network devices, participation rates and tariff limits, so utilities use dedicated management software. In Australia, AS/NZS 4777.2 defines inverter demand response modes. Depending on the mode, a utility command can disconnect the inverter or bring grid import or export to zero.

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• sentence 1: support check: partial - Passages discuss DR programs and earnings but never define DR as rewarding customers for changing grid draw when needed.
• sentence 5: support check: partial - Passages list the tracking challenges and GE's DRMS management software, but don't say utilities use dedicated software generally.
• sentence 1: review: partial - The passages discuss DR programs and DR earnings but never define DR as paying or rewarding customers for changing their grid draw when the grid needs it. -->