Price Response
While frequency and voltage respond to physical phenomena on the electric system, grid-friendly price response is designed to address economic phenomena. With the increasing application of electricity markets to manage the efficient distribution of electric power, more consumers are exposed to electricity prices that change over time, rather than fixed for months or years. In general, higher prices occur at times when the electric system is running short of supply. The purpose of grid-friendly price response is to promote demand response among electricity consumers. Demand response is one means of reducing the market power of electricity suppliers when production runs short. Grid-friendly response to price also allows consumers to reduce their energy costs by using less electricity when prices are high, and more electricity when prices are low.
Read more about this topic: Grid Friendly
Famous quotes containing the words price and/or response:
“I sometimes think that the price of liberty is not so much eternal vigilance as eternal dirt.”
—George Orwell (1903–1950)
“Because humans are not alone in exhibiting such behavior—bees stockpile royal jelly, birds feather their nests, mice shred paper—it’s possible that a pregnant woman who scrubs her house from floor to ceiling [just before her baby is born] is responding to a biological imperative . . . . Of course there are those who believe that . . . the burst of energy that propels a pregnant woman to clean her house is a perfectly natural response to their mother’s impending visit.”
—Mary Arrigo (20th century)