How To Unlock the Power of Demand Response

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Whether you're deep into energy systems or just trying to make your home more efficient, you’ve probably heard about the potential for saving money with smarter electricity use. But how much control are you willing to give up to do that? In this video, we’re going to dig into demand response—an approach that allows consumers to adjust their electricity usage to help balance the grid, cut costs, and reduce emissions.

We’ll explore both the benefits and the risks—how much flexibility you really need to make a difference, and whether exposing yourself to volatile electricity markets is worth it. I’ll also share some personal experiences and practical examples, including the role of technology in making this all a bit easier.

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The Engineering with Rosie team is:
Rosemary Barnes: presenter, producer, writer

Bookmarks:
00:00 Intro
00:48 What is Demand Response?
02:42 How Much Flexibility is Needed?
03:56 Early adopters
07:54 Market-Driven Approach
08:41 Flexible tariff missteps
10:56 Is Flexible Demand Unreliable?
12:23 Is Flexible Demand Inconvenient?
12:49 Future of demand response

Sources:

#EcoFlowAustralia #EcoFlow #EcoFlowDELTAPro3 #SolarGenerator #homebackuppower

[PCRoss]

Thank goodness you’re talking about this. It’s super important.

[donnamarie]

When we bought our first house in 1982 in New Zealand we already had demand response in the form of "ripple" control over our hot water heater. This gave the power supplier direct control over our hot water heater thus giving them the ability to reduce demand during peak times. We never noticed it. We have now gone solar with a diverter for hot water heating but I'm sure "ripple" control is still out there. Oh yes, we got a reduced rate too because of this. Love your videos Rosie, best regards from New Zealand.

[michaelsecomb]

We recently shifted heating of our hot water from night to day, when our solar panels power our house. So we don't need to draw from the grid to heat our water. It's a simple change which is very effective.

[theunknownunknowns]

The Governor of California sent a text out to everyone in California to ask to save power. It worked. Automation of this will be easy.

[waynecartwright-jstw]

Its something we do here in the UK with Octopus energy, we get a cheaper duel tariff rate if we allow the flexible charging of our EV. When there is a surplus of power we can have free electricity to use and in the winter we are paid to reduce usage in saving sessions for grid flexibility and demand response.

[paulrichards]

Rosie, you have done it again, thank you.
Knowledge is power, dispelling, legacy energy system media, advocating for renewables competitors, spreading fear, uncertainty and doubt.

[johnway]

Another outstanding video from the best engineering information and education channel on the web. Rosie is so very good. This is such an important key to a successful energy transition.

[jperksification]

California has shown that simply messaging consumers that reduced consumption is needed for 2 hours. There was a huge response and people reduced the energy consumption was reduced with no capital cost .

[mannbat]

We're already seeing demand response mechanisms at play here in Sydney.
AGL have a "peak energy rewards" program - essentially they provide advance notice asking customers to keep consumption below a specific value for a 1, 2 or 3 hour period. Hit that target and you get a $5 credit for a 1 hour event, or a $10 credit for a 2-3 hour event. No penalty for not hitting the target.
Similar to your point about queuing up for cheap petrol, it's a mechanism that people can leverage if they want.

[douggoodman]

This year BC Hydro started an optional time of day rate plan. Last month I earned $12 by shifing demand away from the evening and into the night. Not much, but I am happy to help reduce peak demand and reduce the need for new power generation projects. I set my EV to charge at night, set the heat pump to come on and heat the house before the rate goes up, and shift my use of hot water and appliances out of the 4-9pm highest cost time. Of course it helps that I am retired, and my solar generation means that for most of the year I draw no energy from the grid between 4pm and 6pm.

[fishyerik]

So spot on! I also think demand response has much much more potential than most people realize, including a lot of actual experts. General lighting is not an issue, not now, people won't have to stumble in darkness to save electricity in periods if high demand, the idea that they would is plain stupid. A led light bulb typically draws a few watts, while things like clothes dryers, water heaters, and EV chargers typically draws kilowatts, and it is often not that critical when the energy for them is taken from the grid.

There are led light bulbs on the market now that are ~15 times more efficient than old incandescent light bulbs, and 2-3 times more efficient than led light bulbs that was considered great just a few years ago, and are still common in stores.

Personally, I pay much less for electricity now, here in Europe, since soon after the energy crisis started, than I have for many years before that. In small part by switching to flexible tariff, and manually avoiding using much power when the price is high that I don't have to use right then. But also by replacing inefficient equipment. That is, my total cost for electricity has decreased a lot, even when I include costs for connection, and sharp increase of energy tax on electricity.

I do think most consumers will need automated systems for demand response, mostly systems that are automated for them, and those systems shouldn't cause any noticeable inconvenience, of any kind. I believe those systems needs not only to work well technically, but the user experience needs to be great in order for people to accept them fast.

[titanlurch]

Here in Quebec Canada, we have a demand response program that is slowly being adopted . I had several intelligent thermostats installed through an incentivized program last fall. The system allows to opt in at two levels or opt out at each event. Opting in pays $ per event. The incentive paid for 95 % of the equipment and installation in one winter .

[robintaillandier]

Thanks for the video Rosie! I have heard the "it will never work, the grid will melt when everybody will plug their EVs at the same time" argument and I find that fascinating that people don't think of their charger/electricity operator as smart enough to balance the load over time. I live in Sweden and I use Tibber as an electricity provider with a spot price tariff. Yes it was more expensive in 2022, but the range of prices within days was huge and Tibber, by default, makes the car charging as low cost as possible based on when you want the car to be ready, with which battery level, and the spot price. Now that the prices have come down it's still great value. I don't understand why it's not a thing everywhere...

[judo-rob]

I very much appreciate your ability to simplify complex topics.

[kevinc-]

We need workplace car charging to charge cars during peak solar, and also help EVs work for apartment dwellers who can't charge while they sleep

[terrya]

Im so happy I left the ca. Power grid 8 years ago. My off grid solar system works so well.

[guringai]

We've been generally happy load shifting with Amber Electric here in Australia for a few years now.
Incredibly cheap for charging the EV on the weekend daytimes. We have timers on the heat pump HWS, dishwasher & washing machines.
There have been a few nasty price spike surprises on cold winter nights, but mostly avoid that with a wood fire.
We are soon to get a battery so that will make our lives a bit easier to manage with 5 minute dynamic pricing.
Also won't need a fire once the house gets fully insulated during the reno, just the RCAC.

[pete]

The bass noises those power plants make when they ramp up and down are pretty neat! :)

[RalphFreeman-okof]

Many moons ago homes in the UK were fitted with a "white meter" that only supplied electrical energy during a specified time period overnight. Consumers like myself installed simple timers to run immersion heaters, washing machines etc during those hours. This led to reduced bills and something for the nuclear power stations to do overnight. It was simple but effective. Just time shifting your loads.😊

[MarkShapiro-mr]

I happen to live near a university that sports about 35 Nobel memorial prizes in economics, and they aren't touting market pricing for electricity yet. Look how far ahead of them you are!!
And thanks especially for showing the steps needed to do it, do it right, and avoid pitfalls.