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:
“To me a book is a message from the gods to mankind; or, if not, should never be published at all.... A message from the gods should be delivered at once. It is damnably blasphemous to talk about the autumn season and so on. How dare the author or publisher demand a price for doing his duty, the highest and most honourable to which a man can be called?”
—Aleister Crowley (1875–1947)
“Women had to deal with the men’s response when the women wanted more time “out” of the home; men now must deal with the women’s response as men want more time “in.””
—Kyle D. Pruett (20th century)