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February 25, 2016 By Tom Sherman

How to increase cash flow without risk

Practically speaking, electricity cannot be easily stored on a large scale. As a result, supply and demand must remain in balance in real time. Traditionally utilities have leveraged peaking power plants to increase power generation to meet demand. Demand response works from the other side of the equation – instead of adding more generation to the system, it pays energy users to reduce consumption. Utilities pay for demand response capacity because it is typically cheaper and easier to procure than traditional generation.

Demand response allows energy users of all kinds to act as “virtual power plants,” adding stability to the grid by voluntarily lowering their demand for electricity. Participants in demand response programs get paid for providing demand response capacity. Demand response providers, called “curtailment service providers” or CSP’s, work with commercial, institutional, and industrial businesses to identify ways for facilities to participate in demand response programs without affecting business operations, comfort, or product quality. Demand response energy reduction measures are customized for each facility and can include turning off lighting, air conditioning, pumps, and other non-essential equipment. In some regions, facilities may participate in demand response by switching to backup generation, thereby reducing demand on the grid. Depending on the type of program, participants may be dispatched just once or twice a year for a few hours, or up to 100 hours per year. The more frequently dispatched programs typically offer higher payouts.

You can learn more about demand response programs and if they are right for your company by contacting Sustainable Energy Services.  We’d love to discuss your situation.

Filed Under: Blog

What Our Clients Are Saying

Sustainable Energy Services performed a complete facility energy audit, showing us how we could save 30+% on our energy usage.  From the final report it was clear we needed to move first on upgrading our lighting. Looking at the math, it was a no-brainer. Based on the unbiased financial analysis provided in the report, we saw a clear way to upgrade to all LED lighting with less than a 2 year payback so we implemented it.  SES also helped us with utility rebates, get competitive bids and secure… Read more
Terry Schordock, Property & Systems Director, Bay Presbyterian Church
In today’s retail environment, margins tend to be diminishing all over the place; retailers need to get creative in order to stop the bleeding, find ways to increase sales, and move the needle on the trend to stay alive and relevant.  One expense area that I noticed was significant was our electric bill, and I decided to delve into how to potentially reduce it.  After researching solar alternatives, it was suggested to me that I first conduct an overall energy audit to identify where and how o… Read more
Charlie Bassett, CEO, Bassett's IGA
Tom did a complete facility energy audit, which got us started on reducing our energy consumption. From his report, we were able to improve our lighting, replaced our old boilers with infrared heat and tackled our compressed air system.  Since 2010, these and other projects help us achieve a 41% reduction in natural gas usage and an 18% reduction in our electricity usage.  Tom has always been available for special projects or advice whenever we needed it.   It has been a pleasure to work with… Read more
Chris Schwartz, President, G&S Metal
“It has been a pleasure working with Laura and Tom Sherman and Sustainable Energy Services over the past three years on our energy procurement.  They have saved our company many thousands of dollars on our energy spend year over year and I have appreciated the regular and timely insights on our electric and gas accounts. Tom completed an energy audit of our facility and uncovered many opportunities to reduce energy consumption.  He also made us aware of a tariff opportunity that will save us … Read more
Wayne Pedlar, Chromaflo Technologies
Tom did a complete audit of our facility and then mapped out a strategy that we have followed for the last 4 years.  To date we have saved 47%.  We were so delighted with our results, we asked him to help us with our 3 other plants.  Tom is very professional and a joy to work with.  I would not hesitate to recommend Tom and his firm if you are looking for a high integrity expert who gets results.  
Jeff Weekley, CFO, Mantua Mfg. Co.

News and Updates

Tom is honored again to be selected as a speaker at the 2020 AEE East Energy Conference in Cincinnati, OH, April 21 & 22

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Tom is honored to be speaking again on motors and VFDs at the AEE World Energy Conference

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Laura and Tom are presenting at the OTCO Class III & IV Workshop July 30 & 31, 2019

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Tom is honored to be selected as a speaker at the 2019 AEE Energy Conference East

The 2019 AEE Energy Conference East will be held at the Hynes Convention Center in Boston on March … [Read More...]

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