Utilities have used demand response programs to reduce load when demand exceeds supply or when electricity costs increase. But these programs have been a last resort. With smart grid, a new era of demand response is emerging. Utilities must understand what drives the change and how they can optimize smart meters and automation technology. These programs will empower customers with real-time information to make energy decisions. Demand response can become a more dynamic part of the value chain for utilities and independent system operators (ISOs). And customers can change consumption to increase system efficiency and reduce capacity requirements-two primary smart grid goals.
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