Distributed Energy Resources are defined by the National Renewable Energy Laboratory as "small, modular, energy generation and storage technologies that provide electric capacity or energy where you need it." AEMA uses the term to include distributed generation (like rooftop solar and fuel cells), energy storage, demand response, and advanced energy management.
The Federal Energy Regulatory Commission defines demand response as: “Changes in electric usage by end-use customers from their normal consumption patterns in response to changes in the price of electricity over time, or to incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized.”
Advanced energy management technologies, including demand response, make energy markets more cost-effective for consumers and reduces stress on the electric grid. With the proper planning, these flexible resources can meet a variety of needs on the grid, including providing capacity, energy, and ancillary services. Demand response also allows customers to reduce their electricity bills through peak load management, and other facility management tools.