Think Negawatts, Not Megawatts
Paying big users to cut demand when capacity is strained.
10 percent of all US generating capacity exists to meet the last 1 percent of demand. Utilities paid EnerNOC $100 million last year simply to stand at the ready—insurance, in effect, against the inevitable days when every AC unit is humming.
I expect some companies who participate will install their own systems. Energy at the place of use, or distributed energy, doesn’t tax the grid because it isn’t being sent anywhere. I wonder if/when fuel cell technology matures, if this isn’t an ideal application. Generate hydrogen from cheap electricity at night, use it at peak times when electricity is expensive and/or you’re being bribed to reduce your demand.