demand response (smart grid) (DR)

Demand response( DR) is a term from smart grids and can be interpreted as demand-based control of electricity consumption. Demand stands for the power demand of the supply network and response for the consumption behavior on the customer side.

Demand-response reflects the network behavior between the power supply network and the consumers and can take a wide variety of forms. In principle, the aim is to reduce electricity consumption during periods of high demand in order to save costly energy resources. Demand response is always based on agreements between the consumer and the electricity supplier. This demand response may originate from the utility and affect the consumer by reducing the amount of energy supplied. The electricity reduction is specified in the agreements and can also be carried out by the consumer if the utility demands it. It can also give the electric utility permission to remotely reduce electricity so that it can reduce the consumer's consumption by shutting down certain energy-intensive equipment.

Since many demand response agreements are made between large industrial companies and electric utilities, and the companies gain financial benefits as a result, they must shut down their facilities when the electric utilities request it.