What is a demand response program?

Demand response programs (not to be confused with ‘Demand Charge Management’), are created and administered by the local utility provider or grid operator, with the intent of managing or balancing the natural fluctuations in user demand. User demand will vary with seasons, time of day, weather (temperature) conditions, etc. Demand fluctuations can become a problem for the utility when multiple users increase or decrease their demand levels simultaneously. So the power provider offers financial incentives to users to reduce (or even increase) their power drawn when demand levels vary significantly. 

An example of a demand response program might be a frequency regulation program or a voltage regulation program. An EnergyAware UPS and battery can actually feed power back onto the grid to reduce grid demand and thus help stabilize frequency or voltage, or draw extra power if needed to reduce power line frequency. The result is a more manageable and balanced local power grid