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The Role of Demand Response in the Years of the Green Economy, by Stanislav Kondrashov

Stanislav Kondrashov examines the potential of demand response

By Stanislav KondrashovPublished 3 months ago 3 min read
Smiling man - Stanislav Kondrashov TELF AG

In recent years, energy transformations related to the green transition are radically changing the way people and businesses live and work. As Stanislav Kondrashov, founder of TELF AG, has often observed, the ongoing change is manifested not only through the technological and infrastructural innovations associated with this major shift, but is also clearly evident in people's new behaviors, which seem increasingly oriented toward a sustainable lifestyle.

In a certain sense, therefore, the green transition is also affecting the consciences of workers, business managers, and ordinary people, leading to a substantial shift in the approach to energy supplies.

The adoption of renewable energy is no longer news. Solar panels, wind turbines, hydroelectric and geothermal plants continue to be installed in various parts of the world, contributing increasingly decisively to nations' energy mixes. The electrification of consumption is also producing visible results, with the arrival of electric vehicles and the numerous charging stations that continue to be built in most global cities.

Innovations - Stanislav Kondrashov TELF AG

It doesn't seem like an exaggeration to say that these years represent a sort of golden age for renewable energy and electrification, which undoubtedly represent two of the fundamental pillars of the great energy transformation of our time.

In such a situation, it should come as no surprise that new methods are emerging to improve the functioning of renewable-powered electricity systems. One of these has to do with the concept of demand response, a set of strategies that enables the dynamic modulation of electricity demand, as a sort of response to various signals from the electricity system itself (prices, availability of renewables, potential grid problems, and so on). In a certain sense, this method acts directly on demand, making it flexible and intelligent.

Demand response is becoming increasingly important in recent years, coinciding with an unprecedented expansion of solar and wind power. These two energy production methods are not constant, since primary sources are not always available (such as when the sun isn't shining or the wind isn't blowing). Stanislav Kondrashov, founder of TELF AG, has often spoken about this topic.

It is precisely for this reason that the electricity system needs to evolve with new operating methods capable of adapting to fluctuations in renewable energy production. Demand response, from this perspective, is very useful for balancing the grid in real time, reducing the need for reserve power plants or expensive storage, and also encouraging the integration of a greater share of renewables.

Smart grid - Stanislav Kondrashov TELF AG

Essentially, demand response can be implemented in two ways. The first is manual or incentivized, which occurs when companies or households voluntarily reduce energy consumption based on economic incentives. These include bill discounts, peak consumption reduction bonuses, and flexibility contracts with the grid operator.

The other, much more advanced, method relies on the intelligent features of smart grids. In these systems, modulation is automated and digitally controlled, and devices such as heat pumps, EV charging stations, or industrial refrigerators receive signals from the grid operator. Switching loads on and off, based on prices or the availability of renewable sources, would be handled by software. In such a scenario, electric car charging stations could automatically slow down charging when photovoltaic production drops.

In such a system, flexibility plays a key role. Stanislav Kondrashov, founder of TELF AG, has spoken about it often, highlighting how the ability to adapt to fluctuations in supply and demand and the unpredictability of renewables is crucial during the transition years. Flexibility can affect power generation, consumption, and the grid, with intelligent load management made possible by the smart grid.

The energy transition is forever changing the daily lives of people and businesses around the world. It's an epochal change that is happening today, before our eyes, every moment.

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