Demand response (also known as load response) is end-use customers reducing their use of electricity in response to power grid needs, economic signals from a competitive wholesale market or special retail rates.
PJM’s wholesale electricity markets provide opportunities for end-use customers to realize value for reducing their demand for electricity. Demand response is an integral part of PJM’s markets for energy
, day-ahead scheduling reserve, capacity
, synchronized reserve
Demand response can compete equally with generation in these markets.
In PJM’s Energy Market, end-use customers participate in demand response by reducing their electricity use either during an emergency event or when locational marginal prices (LMPs) are high on the PJM system. End-use customers participate in demand response in PJM through members called curtailment service providers (CSPs), who act as agents for the customers. A list of PJM members who are CSPs is available.
PJM Demand Response Fact Sheet for End-Use Customers (PDF)
Demand Response Reference Materials
Net Benefits Test Results