Automated HVAC Demand Response

Maximize demand response revenue without sacrificing resident comfort. Parity automatically manages HVAC demand response curtailment, optimizing energy savings and grid participation while eliminating the need for manual intervention.

By enabling smarter energy management for HVAC systems, Parity helps buildings reduce energy costs, improve sustainability, and generate additional revenue through demand response programs.

This graph shows Parity lowering the overall energy demand measured in kWs for a building during a DR event.

How Parity Automates Demand Response Curtailment

This graph shows how Parity reduced overall energy demand (measured in kW) by automating demand-response curtailment for a customer during a DR event.

Starting on Time:

The black line shows the building started curtailment almost a third of the way through the event. With our automation, the blue line, we begin curtailment slightly before the event to maximize revenue and respond quickly to demand response signals.

Depth of Curtailment:

We develop customized curtailment programming to limit the impact on tenant comfort. This can include pre-cooling, a process where air conditioning is run at nearly full capacity for around 2 hours before the event. Pre-cooling can avoid tenant comfort issues and is particularly important for longer events (4+ hours).

Return To Baseline:

With our automation, the HVAC systems returned to their baseline within minutes of the event’s conclusion. Also, with our automation, the post-event kW increase wasn’t as large, helping buildings maintain energy savings after an event.

What is Demand Response?

Demand response (DR) is a strategy that utility companies use to manage electricity consumption during peak demand periods. These typically coincide with the warmest days of summer, when the electric grid is most vulnerable, and its emissions are usually highest.

DR reduces energy demand in real time or within a predetermined window, typically 2-4 hours. This is called a demand response event.

During peak pricing periods, utilities may send demand response signals to participating buildings, allowing them to reduce electricity use and help balance grid demand.

Buildings that participate in demand response programs will reduce their electricity demand to receive financial incentives, such as a rebate, from utility companies or grid operators.

Buildings get paid per kW reduction during scheduled, or sometimes unscheduled, demand response events. This is a great opportunity for buildings to earn additional revenue while lowering energy bills and supporting sustainability goals.

New Revenue Stream

Automated Demand Response Curtailment With Parity

Parity automates curtailment during demand response events, saving building staff time by eliminating manual protocols.

Our software will also maximize your revenue from DR events and reduce the impact of temporary energy reductions on occupants during a demand response event.

By working with the resident manager to pre-program the level of curtailment they are comfortable with, Parity can automatically “switch” the building into DR mode when an event notification is received from a DR aggregator.

We can do this because we remotely control a building’s HVAC systems with high precision through adjustments. We have a deep understanding of the building’s real-time heating and cooling demand.

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Frequently Asked Questions 

What is HVAC demand response?

HVAC demand response is the process of temporarily reducing a building’s heating and cooling energy use during periods of high electricity demand. By automatically adjusting HVAC equipment during demand response events, buildings can reduce peak electricity consumption while maintaining occupant comfort and earn financial incentives from utilities or grid operators.

How does automated demand response work?

Automated demand response uses software to respond to utility or demand response aggregator signals without requiring manual intervention. When a demand response event begins, the system automatically adjusts HVAC settings based on a preconfigured strategy, helping reduce energy demand while minimizing the impact on residents.

How does Parity maximize demand response revenue?

Parity maximizes demand response revenue by initiating HVAC curtailment at the optimal time, optimizing the depth of energy reduction, and efficiently returning the building to normal operation after the event. Automated control helps capture more eligible load reduction than manual processes while reducing the risk of missed or delayed responses.

Will demand response affect resident comfort?

Parity is designed to minimize the impact on resident comfort. Before a demand response event, the system can use strategies such as pre-cooling to prepare the building. During the event, HVAC adjustments are carefully managed based on the building’s characteristics to maintain comfortable indoor conditions whenever possible.

What is pre-cooling in demand response?

Pre-cooling is a demand response strategy that cools a building before a scheduled event begins. By lowering indoor temperatures in advance, the HVAC system can reduce cooling output during the event while maintaining comfortable temperatures for occupants, making it especially effective for longer demand-response events.

Do building operators need to manually adjust HVAC systems during demand response events?

No. With Parity’s automated demand response solution, HVAC adjustments are made automatically when a demand response event is triggered. This eliminates manual protocols, reduces staff workload, and ensures buildings respond consistently and on time.

How much can a building earn from HVAC demand response?

Revenue depends on factors such as building size, available HVAC load, local utility programs, event frequency, and the amount of electricity reduced during each event. Buildings with greater controllable HVAC loads typically have more earning potential through demand response participation.

What types of buildings can participate in demand response programs?

Many commercial, multifamily, residential, institutional, and mixed-use buildings can participate in demand response programs if they have controllable HVAC systems and meet local program eligibility requirements. Program availability varies by utility and electricity market.

How long do demand response events typically last?

Most demand response events last between two and four hours, although some events may be shorter or longer depending on grid conditions and utility requirements.

What happens after a demand response event ends?

Once the event concludes, Parity gradually returns HVAC systems to their normal operating schedule. This controlled transition helps restore comfort quickly while reducing the large spike in energy use that can occur when systems resume normal operation all at once.

Why automate HVAC demand response rather than manage it manually?

Automating HVAC demand response helps ensure events start on time, improves consistency, reduces operational burden for building staff, increases potential incentive payments, and minimizes occupant disruption through intelligent HVAC control strategies.

Can demand response help support the electrical grid?

Yes. Demand response helps reduce stress on the electrical grid during periods of peak demand. Lowering electricity consumption during these times can improve grid reliability, reduce the need for additional power generation, and support a more resilient energy system.

By helping prevent grid strain during extreme conditions, demand response can also reduce the risk of blackouts and brownouts while supporting the integration of renewable energy resources.