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Demand response programs are being used by some electric system planners and operators as resource options for balancing supply and demand. Such programs can lower the cost of electricity in wholesale markets, and in turn, lead to lower retail rates.
Methods of engaging customers in demand response efforts include offering time-based rates such as time-of-use pricing, critical peak pricing, variable peak pricing, real time pricing, and critical peak rebates.
It also includes direct load control programs which provide the ability for power companies to cycle air conditioners and water heaters on and off during periods of peak demand in exchange for a financial incentive and lower electric bills.

Human-in-loop

The process keeps human in loop where the consumers should be notified ahead of the Demand event or energy savings days.

User Comfort

The consumers can reduce their electric consumption only by not operating high consuming loads like Water heater, pool pump, Dasher/dryer, dishwasher, Oven etc. during demand event. Also, they should plan to program thermostats based on the energy savings event which impacts user comfort.

Health safety

By setting a thermostat to an above average (◦F) during peak tariff and changing it back to normal could lead to health problems

Human-in-loop: The process keeps human in loop where the consumers should be notified ahead of the Demand event or energy savings days.

User Comfort: The consumers can reduce their electric consumption only by not operating high consuming loads like Water heater, pool pump, Dasher/dryer, dishwasher, Oven etc. during demand event. Also, they should plan to program thermostats based on the energy savings event which impacts user comfort.

Health safety: By setting a thermostat to an above average (◦F) during peak tariff and changing it back to normal could lead to health problems

Few Challenges to Demand Response Programs

Installation and Remote access to Wi-Fi Thermostat data:

Most demand response programs need to install Wi-Fi thermostat and give data access to the third-party company to control their thermostats remotely during demand response events. Installation of control switches with remote access: Demand response programs need a hardware that is connected at the consumer breaker level. This gives the ability to switch on/off the load including water heaters, pool pumps, dryer etc. during the demand response event.

Building energy data access to third party DR companies: 

Consumers might need to give their energy consumption data access to third party companies to establish a demand response contract.

Rewards incentives program and baseline evaluation: 

Demand response Savings programs are designed to baseline a typical consumption data based on usage pattern, temperature and other key parameters. When these factors change due to Renewables and energy efficiency interventions, the factors for benchmarking, Rate analysis, change in usage pattern needs to be redefined and accounted accordingly.

Neurobotz’s automated demand response (ADR)

NEUROBOTZ provides an ADR add-on circuit to smart Automated Demand Response solution involves measuring the demand under varying periods and adapting the load curve to suit to a site with advanced forecast and predictive models that will provide a smooth operation and significant benefits in reducing energy bills. The zero-crossing circuit in the NEUROBOTZ is more advanced than regular electronic relay that switches (on/off) the load without proper protection.
The benefits of shifting the consumption from peak periods to other periods is well understood, however it has been restricted largely to load shedding at real-time, often leading unwanted interruptions and compromise in day-to-day process. Using NEUROBOTZ’s ADR circuit, the demand response is under the USER control for energy consumption and shedding decision’s during peak hours.