What is the main role of demand response in the PJM market?

The main role of demand response in the PJM market is to reduce consumption during peak periods. Demand response programs are designed to encourage consumers to lower their electricity use temporarily in response to high demand or price signals. This reduction helps to balance supply and demand on the electrical grid, ensuring reliability and preventing outages during times when electricity use spikes, such as hot summer days when air conditioning use is high.

By effectively managing demand, demand response plays a crucial role in stabilizing the grid, allowing for better integration of renewable resources without compromising reliability. This helps to mitigate the need for additional generation, especially from fossil fuels, which can have higher costs and environmental impacts. Therefore, reducing consumption at peak times is essential for overall grid efficiency and can help to lower electricity costs for all consumers.