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The ability to take power when it is cheaper (and more available) and
generate it when power is expensive (and by inference less available)
provides a financial benefit to consumers. In an era of interval metering
or paying the real cost of electricity, large consumers of electricity
will derive large benefits from taking steps to reduce their demand
for purchased power at peak times.
Increasingly, utilities are formulating strategies to cope with providing
power in severely constrained systems. They are currently providing
incentives to consumers to reduce their consumption at peak times. This
incentive will move to penalties as they become increasingly unable
to provide peak power at certain times.
The ability to store off-peak energy and regenerate it at peak times
is the greatest demand management tool available to both consumers and
utilities.
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