Demand Response

Demand response is adjusting electricity consumption in response to grid signals or prices — shifting or curtailing load during peak periods. Industrial sites earn payments or avoid high tariffs by reducing demand when the grid is stressed.

As grids absorb more variable renewable generation, flexibility is increasingly valuable. Plants with deferrable loads — pumping, refrigeration, electrolysis, charging — can shift them away from peak price windows or respond to grid operator requests. Demand response turns load flexibility into revenue while supporting grid stability, and is increasingly automated through energy-management software.

Related terms

Energy Management System (EnMS / EMS) · Power Factor · Carbon Intensity

Where this applies

Electrifying process heat · Integrating thermal energy storage · Installing power factor correction · Managing electrical peak demand · Adopting free cooling · State of Industrial Energy Management 2026 · Electricity's rising share of industrial energy · How fast global electricity demand is growing