Demand Response

The power grid supplies only the electricity we ask for, though, and it's up to us to practice energy conservation. One way to decrease the demand load is a concept called demand response. In broad terms, demand resp­onse programs give us -- residential, commercial and industrial consumers -- the abi­lity to voluntarily trim our electricity usage at specific times of the day (such as peak hours) during high electricity prices, or during emergencies (such as preventing a blackout).

Demand response allows energy users of all kinds to act as "virtual power plants," adding stability to the grid by voluntarily lowering their demand for electricity. Participants in demand response programs get paid for providing demand response capacity. Demand response providers like Muni-Fed Energy work with commercial, institutional, and industrial businesses to identify ways for facilities to participate in demand response programs without affecting business operations, comfort, or product quality. Demand response energy reduction measures are customized for each facility and can include turning off lighting, air conditioning, pumps, and other non-essential equipment. In some regions, facilities may participate in demand response by switching to backup generation, thereby reducing demand on the grid. Depending on the type of program, participants may be dispatched just once or twice a year for a few hours, or up to 100 hours per year. The more frequently dispatched programs typically offer higher payouts.


192 Marina Drive Suite 192
Long Beach, CA 90803
P: 714.321.3346