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:
“It doesn’t do good to open doors for someone who doesn’t have the price to get in. If he has the price, he may not need the laws. There is no law saying the Negro has to live in Harlem or Watts.”
—Ronald Reagan (b. 1911)
“Love is the victim’s response to the rapist.”
—Ti-Grace Atkinson (b. 1938?)