Demand side flexibility

With the growing demand for electricity and the increasing use of renewable energy, managing energy usage is more important than ever. Demand flexibility gives property managers the ability to adjust how and when energy is consumed, helping to cut costs and reduce pressure on the grid. In fact, research shows that reducing peak demand could save billions in infrastructure costs, making it an essential tool for multifamily properties.

In this blog, we’ll explore what is demand flexibility and why it’s so important for your property management strategy. We’ll explore the benefits it offers, different ways to implement it, and how effective communication plays a role in making it successful. By the end, you’ll have a clear understanding of how demand flexibility can improve energy efficiency and lower costs across your properties.

What is demand flexibility

So, what is demand flexibility? In simple terms, it’s the ability to adjust electricity use during peak times to help balance supply and demand. By managing this balance, you can reduce electricity costs and help the grid operate more efficiently.

For example, multifamily properties typically experience high demand during mornings and evenings when tenants are most active. Demand flexibility allows you to shift energy use to off-peak hours when electricity is cheaper. This helps you lower your energy bills without affecting tenant comfort.

This flexibility can be automated through smart energy management systems that adjust usage based on real-time data. These systems track energy consumption and shift non-essential tasks, like heating water or charging EVs, to periods of lower demand. By making these small adjustments, you can significantly reduce your property’s overall energy costs without impacting daily operations.

Benefits of demand flexibility

The financial benefits of demand flexibility are one of the most compelling reasons to implement it in your properties. By shifting energy use to off-peak times, you can take advantage of lower electricity rates offered during periods of reduced demand. This can result in significant savings, especially for large multifamily buildings where energy demand fluctuates throughout the day.

Demand flexibility also helps avoid the need for costly upgrades to the electricity infrastructure, which is another huge advantage. In the US, reducing peak demand helps utilities avoid the high costs of expanding grid capacity, ultimately leading to lower energy costs for consumers. This translates into lower operational costs for your properties, helping you maintain competitive rents and pass some savings on to tenants.

Another important benefit is the increased resilience of your property’s energy system. By implementing demand flexibility, you are better prepared to manage periods of high energy demand, reducing the risk of outages or grid-related disruptions. This not only helps your bottom line but also ensures that tenants enjoy reliable energy without unexpected interruptions.

Electricity supply and demand

Balancing electricity supply and demand has always been a challenge, especially as the energy grid evolves to include more renewable sources like solar and wind. These renewable sources are intermittent, meaning they aren’t always available when needed, which can create mismatches between supply and demand. During peak demand periods, this can put significant strain on the grid, leading to higher energy costs and even service interruptions.

Demand flexibility helps address this challenge by shifting energy use to times when renewable energy is more readily available. For example, using energy during the middle of the day, when solar power generation is at its highest, can ease pressure on the grid and reduce costs. This approach makes it easier to align energy use with sustainable energy production, helping both your property and the environment.

By adapting energy use to follow supply trends, you not only save on costs but also support a more resilient and stable grid. This is especially important as more renewable energy sources come online in the US, creating new opportunities for property managers to optimize energy use. With demand flexibility, you can help ensure the grid remains reliable while keeping your energy costs in check.

Small scale flexibility

Demand flexibility isn’t just for large grids; it can be applied on a smaller scale in multifamily properties. By using smart devices like thermostats, EV chargers, and heat pumps, you can shift energy use to off-peak hours. These devices help maintain tenant comfort while reducing overall energy costs.

For example, smart EV chargers can be programmed to charge vehicles during the night when electricity rates are lower. You can use energy management software to automate and optimize these shifts, making the process easier and more efficient. Small-scale flexibility allows you to optimize energy use without sacrificing tenant satisfaction.

Grid scale flexibility

At the grid level, demand flexibility plays a crucial role in stabilizing the energy system. By reducing peak demand, properties like yours help prevent overloading the grid, which can lead to blackouts. This also reduces the need for expensive grid upgrades, benefiting both consumers and energy providers.

To maximize efficiency, you can track and optimize your property’s energy use with a powerful energy dashboard. These tools allow you to monitor consumption patterns and make data-driven decisions to further reduce costs. Participating in grid-scale flexibility may also offer opportunities to generate revenue by feeding excess energy back into the grid.

Communication

Two-way communication between your property’s systems and the energy grid is essential for demand flexibility. Smart devices can automatically adjust energy use based on signals from the grid. This allows you to optimize energy consumption without manual intervention.

For example, when the grid is under stress, it may send a signal to reduce electricity use temporarily. Your smart devices will automatically respond, helping ease the strain on the grid without disrupting tenant comfort. You can also improve your property’s energy performance by monitoring energy usage in real-time, allowing you to make timely adjustments that maximize savings.