Demand Resource Clause Samples

A Demand Resource clause defines the rights and obligations related to resources that can reduce or shift electricity consumption in response to external signals, such as price changes or grid reliability needs. This clause typically applies to entities that agree to curtail their energy use during peak periods or emergencies, and may outline the conditions, notification requirements, and compensation mechanisms for such demand reductions. Its core function is to facilitate grid stability and efficiency by enabling demand-side participation in energy management, thereby helping to balance supply and demand and prevent outages.