The day is sweltering, air conditioners are cranked up, and the power grid is straining to meet demand. Today is a "needle peak" day -- on the annual power demand chart, it shows up as a spike. Out of the year's 8,760 hours, needle peaks will occupy 200 hours or less. An extreme day like this is why the grid maintains roughly twice as much power generating and transmission capacity as it uses on an average day. Even though power plants and lines are idle most of the year, this costly overbuilding is needed to cover all contingencies. The grid is built to be there "just in case."
But what if another power resource were available that could dramatically reduce that peak demand, one that involved generating and transmitting no power at all? No, this isn't some weird "zero energy" thing. The paradoxical sounding resource I'm talking about is already in use. It's the demand, also known as the load, itself. The basic idea is that the grid can meet overall needs not only by supplying power, but by adjusting power use. The word for this is demand response, and it's a fundamental aspect of the smart grid.