Demand response
Also known as: DR, DSR, Demand-Side Response
A mechanism where electricity consumers adjust their consumption in response to grid signals or price incentives — typically reducing demand during peak periods.
In energy storage
Front-of-meter BESS participate in demand response by discharging on instruction from a grid operator or aggregator during system peaks, earning capacity or availability payments. Behind-the-meter systems reduce a site's metered demand during peak periods to lower demand charges — which can represent up to 50% of a commercial electricity bill — and can be enrolled in utility or ISO/RTO demand response programmes as part of a DER aggregation.