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:
“Nowadays people know the price of everything and the value of nothing.”
—Oscar Wilde (1854–1900)
“Perhaps nothing in all my business has helped me more than faith in my fellow man. From the very first I felt confident that I could trust the great, friendly public. So I told it quite simply what I thought, what I felt, what I was trying to do. And the response was quick, sure, and immediate.”
—Alice Foote MacDougall (1867–1945)