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Can the Smart Grid Enhance the Value of Demand Response?

February 17, 2010

In “Demand Response on Steroids: Extra Value by Using the Smart Grid?” (Natural Gas & Electricity, February 2010), Vice President Robert Earle examines the degree to which the smart grid will contribute to the impact of demand response – the reduction in energy requirements designed to reduce peak load or avoid system emergencies. While some commentators have characterized demand response via smart grid as a “killer app,” Dr. Earle examines its current and projected value and concludes that the diminishing returns that correspond to the increasing availability of demand response warrant continued evaluation of benefits and costs.