Demand Response Programs Shine on Winter’s Coldest Days

Program Participants Help Reduce Power Demand When Grid Needs it Most

When extreme temperatures hit the Valley region, keeping electricity flowing reliably is a top priority.

One of the tools TVA uses to meet this challenge is its Demand Response portfolio – a suite of programs designed to help carefully manage electricity demand when the grid needs it most.

Partnerships that Benefit the Valley Region

Demand Response programs are flexible, proven solutions that offer benefits to participants in exchange for reducing electricity use during peak demand periods. These programs help TVA maintain reliability, keep costs low and support economic development across the region in ways that benefit businesses, residents and the Valley region as a whole.

The programs are designed to maximize participation across all market segments, and the benefits are a win-win for both TVA and the customers who participate.

"For large industries, the savings from Demand Response can provide a competitive advantage, reducing electricity costs, which are one of their biggest expenses," said Claire Jones, manager of Demand Response and Event Management.

The Demand Response Impact

In addition to helping provide reliability during extreme weather and helping avoid expensive market purchases, contributing to TVA’s low rates, Demand Response programs provide economic benefits. Participants receive financial credits, keeping money in the Valley region.

"These programs keep dollars and investment local, which is part of TVA’s mission to make life better for the people we serve," Jones said.

Examples of success can be found throughout the seasons.

Last spring, TVA launched a new Smart Thermostat Rewards program, which recently provided nearly 50 megawatts of load reduction when it was needed most – enough to power about 29,250 households.

And during a record-setting cold day on Jan. 22, 2025, Demand Response delivered 1,300 megawatts of demand reduction, saving TVA more than $1 million in a single day by avoiding costly market purchases.

According to Jones, in an emergency, TVA could tap into nearly 2,000 megawatts of demand reduction, which is equivalent to the energy produced by about 1.5 nuclear units – a significant resource for grid stability.

As well as being a flexible resource to support the grid, the Demand Response portfolio consistently exceeds expectations, with performance levels over 100%.

That means, when called upon, participants deliver more than their contractual commitments, underscoring the shared value of these partnerships for seasons to come.