LEED AP Building Design and Construction (BD+C) Practice Exam

What is the minimum contract period for demand response?

1. Six months

2. One year

3. Two years

4. Three years

The correct answer is: One year

The minimum contract period for demand response programs is indeed one year. Demand response is a strategy used by utility companies to reduce peak load during times of high electricity demand. The one-year minimum allows for sufficient time for both utilities and participants to evaluate the effectiveness and benefits of the program. This timeframe is necessary for utilities to organize and manage demand response initiatives effectively, ensuring that there is enough data and participation to assess performance, adjust strategies, and provide appropriate incentives. A shorter duration may not provide a comprehensive understanding of the demand response capabilities and limits of participating buildings or systems, which could lead to underutilization or mismanagement of resources. Longer contract periods also often incentivize deeper commitment from building owners and operators, enabling them to plan and invest in necessary infrastructure or operational changes to maximize their participation and benefit from demand response strategies over time.