Demand response isn’t a new kid on the block. Operators of electricity networks have used it in various forms for several decades, with varying degrees of success. But it’s yet to become part of mainstream conversation—yet being the operative word.
As demand response becomes more and more important with the integration of renewable energy sources like wind and solar, and as the rising grid demand puts greater pressure on power systems, Voltalis, the European leader in demand response technology, is about to change the conversation.
But let’s start at the beginning. To fully understand what demand response is and how it works, it’s important to first understand how the flow of electricity works.
The nature of the electricity game
As a resource, energy is quite unique. Unlike water, it can’t be stored (at least not on the grid) and must be generated and consumed at the same time. It’s therefore important to ensure that there is always a perfect balance between the inflow and outflow of energy on the grid at any time. This means that when the demand for power rises, the supply must be increased in real-time to avoid outages.
Traditionally, when demand spikes during peak hours or supply drops (the sun doesn’t always shine and power plants don’t always work as intended), the grid calls on backup generation to balance the need. This is often from polluting gas power stations that have been purpose-built to satisfy peak demand andthat can ramp up quickly. This approach, however, is costly and inefficient.
This is where demand response comes in.
Reducing the demand on the grid
Demand response is used to balance supply and demand on the grid. Instead of just increasing power generation when demand spikes or supply is low—especially important when integrating renewable energy sources which are variable and dependent on weather conditions, onto the grid—demand response reduces overall electricity demand.
This can take the form of “loadshedding,” where grid operators manage energy loads by temporarily reducing power to certain areas or industries. More recently, the responsibility has shifted to consumers, who are encouraged to reduce or change their electricity use during peak periods in response to price signals or incentives. This can take many forms, from large industrial plants reducing their power consumption to households adjusting their thermostat or delaying the use of appliances like dishwashers or washing machines.
These strategies, while simple, don’t really work in practice. The first—loadshedding—disrupts production and quality of life, while the second relies on consumers to take an active role in demand response, which is time-consuming and requires constant monitoring. Energy providers struggle to motivate enough participants, and any savings are minimal and inconsistent.
The Voltalis difference
Demand response is a solution to increased electricity demands and the resulting challenges, like the reliance on environmentally unfriendly fossil fuels and higher operational costs, which are passed on directly to the consumer. But, for it to make a real impact, it needs to be operationalised in a streamlined, efficient and scalable way.
This is what we do.
As the leaders of what we call Automated Demand Response, we optimise energy consumption for electricity consumers by reducing demand on the grid, minimise the reliance on fossil fuels and lower energy bills—one household at a time. And the more households and businesses that install our system, the greater the benefits. Our model works by accumulating small, individual energy savings into one big one that makes a real impactful difference.
What is the difference between demand response and our Automated Demand Response
The short answer is not much at all—but at the same time, there is a world of difference.
Instead of relying on individual consumers to monitor and adjust their usage, or worse, endure loadshedding, we quite simply do it for you—quietly and in the background. Our solutions, built on extensive research and technological innovation, are precise, provide real-time energy distribution that delivers optimised energy at scale and supports a more resilient and flexible electricity network. Importantly, our solutions are free to consumers and don’t have any impact at all on lifestyle or daily routine.
How it works
We install small, discreet smart switches quickly and simply in properties where heating and cooling are controlled by electricity. Our system optimises the electricity consumption of each heating or cooling appliance connected to one of our switches by modulating the energy flow to each device during peak demand times in real-time, communicating the small reductions made with the grid. This pioneering approach is fully automated.
This temperature shift, while imperceptible to individual users, when conducted at scale across 200,000 residences or businesses, results in significant reductions in overall energy demand, easing pressure on the grid and reducing the reliance on costly and carbon-intensive power sources.
While our system works silently in the background, users have the additional benefit of being able to use our MyVoltalis App to control their radiators remotely, monitor their energy use, or switch the functionality off completely if desired. Simple, easy and convenient.
Our solutions are free to end users
You’ll notice that we used the word “free”. The sceptics among you are probably asking, “What’s the catch? Nothing’s for free?” You’re right, of course—nothing is for free, but our system really is free to end users—homeowners, business owners, property managers and facility operators in sectors such as healthcare and hospitality.
So, how do we use this word free so confidently? Because we are already paid by the electricity networks for our contribution to the grid’s stability and security. We offer them flexibility—with our system in place they’re not forced to switch on their carbon-intensive, backup power plants which are a far more expensive alternative.
Our solution allows the electricity network to maintain grid stability while reducing costs and improving efficiency without resorting to fossil fuel power.
It’s a win-win
Demand response is changing, and we are leading this change. The conversation before—if one took place at all—was centred around loadshedding or unrealistic expectations placed on end users. Our simple solutions change that. They assist energy suppliers by optimising grid stability and reducing reliance on costly backup generation, while also helping users save money, save energy and play their part in saving the planet too. All together better.