Active Demand Response programs require the participants to take manual steps to reduce energy use in response to a DR event declared by the utility. Passive Demand Response, also known as Automated Demand Response (ADR), occurs automatically, without customer intervention, using smart or connected technology that can be programmed, adjusted by the utility or the aggregation partner, or uses a timer-based setting in the device.
For industrial customers, for example, ADR combined with an energy management system could activate switch-over to onsite solar panels or battery storage for electricity during a DR event or reduce heating or cooling of an office building during peak times. ADR can help businesses reach sustainability goals through NetZero credits, LEED qualifications, and more. ADR programs can include incentives and rebates for equipment and installation costs.
Consumers can participate in ADR programs by using internet-connected thermostats, water heaters, EV chargers, or other devices that can be adjusted automatically to reduce energy consumption during peak hours. For example, a home can be pre-cooled or pre-heated before peak hours, and the thermostat turned up or down during peak times. Or, a utility or an aggregator can determine the lowest cost time to charge an EV or the time with the least impact on the grid.