Demand response events help BC Hydro reduce load on the busiest parts of their system so that the electrical grid operates more efficiently, thereby reducing the need for expensive new infrastructure. If businesses join their demand response program and shift or reduce at least 5% of their organization's typical electricity use, they will earn $50 per average kilowatt (kW) demand reduction at the end of the season they participate in. The baseline for energy use will be the five days prior to the event.
Demand response events are short periods of high demand on the system—lasting no more than four hours each. They take place during the winter season (November 1 to March 31) and the summer season (June 1 to September 30). Businesses can register for winter events regardless of where their facility is located. However, summer season events are only available for select regions where electricity use peaks in the summer. If a business is located in one of these select regions, they can enroll for summer, winter, or both.
The total reward is based on the average kW reduction during the season's events, meaning that the more energy a business reduces or shifts, the more money they can earn.
"Demand response is risk-free and easy to sign up for. It's a pay-for-performance model, not a penalty for non-performance," says Paul Seo, Senior Program Manager at BC Hydro. "Customers can opt out of 40% of all the events and still be eligible for a reward. These can be quite significant depending on how big the usage reduction is. Demand response is one of the simplest—and cheapest—ways to reduce or shift usage and lower costs."
Demand response success for Pure Sunfarms
One business who has seen great success recently with demand response is Pure Sunfarms, a Canadian cannabis producer owned by Village Farms International, Inc. Their Delta facility is one of the largest cannabis cultivation facilities in the world, covering 2.2 million square feet of indoor greenhouse and production space. It was originally used to grow hydroponic vegetables before transitioning to cannabis in 2018 after a major electrical infrastructure upgrade.
As you might expect with such a large facility, Pure Sunfarms takes energy conservation very seriously. Jonathan Bos, VP Asset Development at Village Farms International explains: "Stewardship is one of our core guiding principles at Village Farms International. It goes beyond environmental responsibility, representing a holistic approach to how we manage our business. Whether it's through facility upgrades, lighting innovations, or climate control systems, we're always looking for ways to reduce our footprint while maintaining the high standards our consumers expect."
"Our BC Hydro representative, Ivana, introduced us to the demand response program and its potential benefits. Her guidance helped us explore how participation could align with our operational and sustainability goals," continues Jonathan. "It was a natural fit, aligning with our efforts to explore new ways to reduce energy usage during peak demand periods. We participated in multiple events throughout the program to better understand the operational impacts and potential benefits."
Pure Sunfarms have six different meters across their facility measuring electricity for different systems. All this data contributed to the results of their demand response events. Baseload systems (including essential operations and HVAC) were excluded from the program to ensure there was no disruption to their core growing operations.
The results were amazing: for the seven demand response events they participated in during our 2024-25 winter season, Pure Sunfarms were able to reduce the average load for their lighting by an average of 35%.
As a result of demand response, Pure Sunfarms has been able to identify some future lighting project opportunities. "The demand response program offers an interesting opportunity to explore energy savings in a structured way," says Jonathan. "We recommend approaching it with a clear understanding of your energy profile and conducting a cost-benefit analysis to determine if participation makes sense for your operation. It's not one-size-fits-all, but for some, it may be a strategic move toward greater sustainability and efficiency."
For more information:
BC Hydro
bchydro.com
Pure Sunfarms
puresunfarms.com