6 Demand Side

The smart grid gives utilities the ability to control electric demand to some extent.

Peak Clipping

Meeting peak usage is the most costly power that a utility can provide.  Hence, utilities try to diminish peak usage periods as much as possible.  This is known as peak clipping.  For instance, customers with smart thermostats can earn a discount on their bill if they allow the utility to control the thermostats a few times a month during peak usage.

Load Shifting

In addition, utilities will try to move customer demand during peak usage to off-peak times this is known as load shifting.  Examples of this would include electric car charging occurring outside of peak time period or a company with a large warehouse refrigerator or freezer cooling these units more substantially during off-peak periods. (Gellings 246)

Works Cited
Gellings, Clark W. The Smart Grid : Enabling Energy Efficiency and Demand Response. Fairmont Press, 2009.