In 2022, the world faced an unexpected energy crisis of unprecedented scale. Electricity prices skyrocketed, with an enormous impact on the energy supply for a wide range of industries. In Japan, the demand for electricity was so high that the Japanese government issued an electricity ”power crunch alert” due to the very high summer temperatures.
Companies that want to keep electricity costs as low as possible typically think about adjusting their equipment settings or changing where they purchase their power, but there are limitations to what can be done alone.
One of the solutions that companies can choose from is Demand Response. Demand Response is an innovative program that allows customers to earn revenue by contributing to lowering electricity demand during times of power peak demand. Customers can help improve the ability to supply electricity to the power market by temporarily shutting down their facilities to reduce power usage or switching to backup power sources.