What does the term "demand response" refer to?

The term "demand response" refers to strategies designed to reduce electricity usage during peak periods. Such strategies are crucial in managing energy consumption and alleviating stress on the power grid during times when demand is highest. By incentivizing consumers to decrease their energy usage at these peak times, demand response helps balance supply and demand, maintain system reliability, and can also lead to cost savings for both utilities and consumers.

Implementing demand response measures can involve programs that encourage users to switch off or reduce power consumption for certain appliances, adjust thermostat settings, or shift energy-intensive activities to off-peak times when electricity demand is lower. This collective adjustment can significantly enhance the efficiency of the energy system and contribute to a more sustainable energy landscape.