Demand Flexibility: Benefits for Building Owners 

The US Department of Energy’s report A National Roadmap to Grid Interactive Efficient Buildings defines demand flexibility, sometimes referred to as load flexibility, as the capability provided by on-site distributed energy resources (DERs) to reduce, shed, shift, modulate, or generate electricity. For building owners, implementing these tailored demand flexibility solutions can unlock substantial benefits.

In this 12-part series, we explore how demand flexibility is transforming energy management, with a focus on the unique opportunities it presents for businesses seeking to optimize their energy use while contributing to a more resilient grid.

Commercial Flexibility: Optimizing Operations

Given their larger energy footprints, commercial buildings present substantial opportunities for demand flexibility. Commercial facilities often have access to advanced systems that can be optimized for energy efficiency and operational adjustments. Here’s how businesses can leverage demand flexibility effectively:

• Optimizing HVAC Systems: Heating, ventilation, and air conditioning (HVAC) systems are among the most energy-intensive components of any building. By integrating smart controls, businesses can adjust heating and cooling based on occupancy patterns and real-time grid demands. For instance, during peak demand hours, cooling can be reduced in less-used areas of the building while maintaining comfort in occupied spaces. Over time, these optimizations can translate into significant energy and cost savings without compromising comfort or operational efficiency.

• Building Automation: Comprehensive building automation allows businesses to manage energy more holistically, reducing manual oversight and enhancing efficiency across all building systems. For example, automated lighting systems can dim or turn off lights in unoccupied areas, while advanced sensors optimize HVAC performance across different building zones.

• Energy Storage Integration: Businesses are increasingly turning to battery energy storage systems to manage energy use more effectively. These systems allow businesses to store excess renewable energy generated during low-demand periods and release it during peak hours when electricity prices are higher. By doing so, businesses can reduce their reliance on the grid and support overall grid stability, all while reaping financial benefits.

Challenges and Benefits of Demand Flexibility

While demand flexibility offers tremendous potential, there are challenges to implementing it effectively. In commercial settings, the complexity of operations can be a significant barrier. Implementing demand flexibility often requires careful integration with existing systems and detailed planning to ensure that productivity and comfort aren’t compromised. Businesses must also manage potential upfront costs associated with upgrading automated control systems and energy storage solutions.

However, the long-term benefits of demand flexibility far outweigh these challenges:

• Increased cost savings: By optimizing energy consumption and shifting usage to off-peak times, businesses can save significantly on energy costs.

• Reduced environmental impact: By relying more on renewable energy sources and minimizing peak demand, businesses can lower their carbon emissions and contribute to a cleaner energy future.

• Enhanced grid stability: As more businesses adopt demand flexibility, the grid becomes more resilient, reducing the likelihood of outages and ensuring reliable electricity for all.

The Future of Demand Flexibility

By leveraging demand flexibility, building owners can reduce energy costs while enhancing grid resilience. Moreover, as the electrification of heating, cooling, and electric vehicles expands, demand flexibility will need to evolve to address new peak periods. This will require innovative program designs and advanced grid management technologies to shift loads efficiently throughout the year.

Utilities are also expected to offer more incentives for participation, making it even more financially appealing for building owners to adopt demand flexibility strategies. And, demand flexibility will help building owners achieve their sustainability goals while contributing to a more resilient and efficient energy grid.

In light of these opportunities, Edo provides building owners with tailored demand flexibility solutions that enhance building operations, energy efficiency, and cost savings. By partnering with Edo, building owners can stay ahead of energy trends, assist utilities in enhancing reliability, and optimize energy management strategies for long-term sustainability.