Automated demand response: what you need to know, why integration is key to tapping the benefits, and how NexRev can help
Let’s take a look at Automated Demand Response (ADR) programs. They are, in very general terms, designed to enable buildings to automatically adjust their energy consumption in response to signals from utilities or grid operators.
Such programs are rapidly growing in importance because they help balance supply and demand on the electricity grid. This is particularly valuable during peak periods or in emergencies. In short, ADR helps improve grid stability, reduce energy costs, and can also support sustainability goals. Most importantly for you, they can help you reduce your energy costs.
Background and history
Automated Demand Response (ADR) programs have been part of the energy landscape for a while now. And it’s worth quickly reviewing their historical evolution to better understand their role in the landscape today.
ADR’s origins lie in the 1970s and 80s, when the idea of demand response came to the forefront. It was seen as a way to balance supply and demand without relying entirely on additional power generation. The earliest ADR programs were essentially simple load control devices, for instance radio-controlled switches applied to cycle appliances like water heaters.
With the emergence of automation and advances in communication technologies and building automation systems in the 1990s, more sophisticated, automated methods for demand response began to appear. These innovations focused on industrial and commercial facilities and were able to provide significant load reductions as a result of deploying pre-programmed responses triggered by utility signals, in the process reducing the need for manual intervention.
Spring forward and in the 2000s, ADR gained serious traction for perhaps the first time, particularly in regions with high energy costs or grid reliability concerns, such as California. Programs were also often supported by regulatory mandates aimed at reducing peak demand and integrating emerging renewable energy technologies.
Also in this period, the development of smart meters, energy and building management systems (EMS/BMS platforms), and open standards like OpenADR (Open Automated Demand Response) also pushed such systems ahead.
As a result, commercial and institutional buildings, equipped with advanced building automation systems, became key participants in ADR programs. Building managers were now easily able to automate load-shedding measures such as adjusting HVAC settings, dimming lights, or shifting non-essential operations.
Over the past decade the rise of renewable energy sources has introduced greater variability into the grid, and this has only increased the need for flexible, automated demand-side solutions, due to the fluctuating nature of these sources of power.
As a result, ADR has now become critical for balancing supply and demand in real-time. It’s easy to see this as, for example, buildings are now often active participants in smart grids, with ADR systems enabling them to respond dynamically to grid conditions, through integration with EMS/BMS solutions like NexRev’s Freedom.
Today, technologies like IoT, machine learning, and advanced analytics are further enhancing the efficiency and responsiveness of ADR in building management. And with ADR now increasingly linked to broader sustainability goals, including decarbonization and energy resilience, buildings equipped with ADR systems are better positioned to integrate energy storage and distributed energy resources (DERs).
The importance of Automated Demand Response in building management
Why does all this matter? It’s principally because buildings, as we know, are significant energy consumers so ADR has an important role to play in their management. By automating demand response, buildings can reduce or shift their energy usage without manual intervention, enhancing energy efficiency and aligning with the grid's needs.
Furthermore, ADR is becoming especially important as more renewable energy sources, which are variable by nature, are added to the energy mix. Buildings with ADR capabilities can quickly adapt their energy usage in response to grid fluctuations, which helps integrate renewables more effectively.
Why participate in ADR?
Let’s dig a little deeper and consider the specific reasons for participating in ADR programs in more detail. There are a number of motivating factors, perhaps the foremost of which is financial. That’s because utilities often provide monetary incentives for ADR program participants, for example offering compensation for reducing or shifting energy use during demand response events. And, of course, by reducing energy during peak times, buildings themselves can also save on energy costs, as rates are typically higher during these periods.
There are also operational efficiency gains to be accrued because by integrating with EMS/BMS solutions, ADR technology can make energy adjustments seamless and automatic, optimizing energy use without compromising occupant comfort.
NexRev can help
Participation in ADR programs (and the ability to accrue their benefits) necessitates integration with your Building/Energy Management System. Because Freedom from NexRev integrates seamlessly with Automated Demand Response, it makes participation simple.
NexRev is the leading provider of cloud-based, multi-site energy management systems, backed by AI and delivered by SaaS models, that help businesses eliminate energy waste and reduce costs.
Our innovative Freedom™ EMS/BMS solution brings process-driven intelligence and AI to facilities management, providing complete remote control and centralized visibility of your energy-consuming devices across complex, nationwide property portfolios for leading brands in retail, theaters, restaurants, commercial, and industrial facilities.
With NexRev Freedom, our customers reduce waste, optimize energy management, and generate permanent cost savings by making the right decisions. To begin a discussion on how we can help you to reduce energy costs and waste please email us at