Energy is no longer a fixed cost. It can be managed to a company’s benefit by building a demand response program into its energy monitoring system. What’s interesting is that there’s not only efficiency to be gained for industrial and commercial operations, but actual profit.
As energy is in increasingly high demand, the grid needs more and more flexibility to cope. Electricity pricing is typically based on time of day. Users who exceed a maximum threshold are penalized. But utilities are now offering incentives for customers willing to reduce their power use during certain conditions or predetermined events.
Facilities that take advantage of these demand response programs improve grid flexibility and performance, and in return are credited and/or billed at reduced rates. Profit comes from either getting paid by the utility for every month’s agreement to shed load (whether an event occurs or not!), or the
actual shedding of the load for an event.
Every utility’s programs are a bit different and the initial process of granular, real-time energy monitoring and auditing are quite extensive. Contact an electrical contractor for an energy or demand response audit to find out more.