According to NOAA, 2024 was the hottest year on record. If that sentence gives you déjà vu, that’s only natural: the record has been broken seven times since 2014. The global upward trend in temperatures is driving local change for commercial facilities. Put simply, increased HVAC usage in the face of rising temperatures is threatening electrical supply, and many enterprises are taking concrete steps to be part of the problem rather than the solution.
Rise in HVAC Applications
Historically, both electrical generation and HVAC applications have been very reliant on fossil fuels. Even now, about half of heating installations rely on fossil fuels like natural gas to operate — but the balance is shifting. Financial incentives and lower operation costs are driving the installation of heat pumps, a far more efficient HVAC technology that doesn’t rely on the direct consumption of fossil fuels, but does rely on the power grid.
This process of HVAC electrification has paralleled increased investment in renewable energy sources. The IEA’s World Energy Outlook predicts that by 2050 over 70% of electrical power will be generated by renewables, and over half of HVAC installations will use heat pumps.
That all seems like a very good thing, but there’s a catch. As the planet heats up, we’re using HVAC more and more to stay cool. In warm climates, HVAC can account for over half of electricity demand in the summer, and upwards of 70% at peak times. Utilities can’t always take the strain, resulting in brownouts at the worst possible times.
Need for Demand Response
Enter demand response. Demand response (DR) is a strategic approach that allows utilities to manage grid stress during peak demand periods. Unlike energy management, which focuses on optimizing power use within a building, it actively coordinates with the electrical grid, adjusting energy consumption in response to real-time demand.
Energy management and demand response are complementary but distinct. Energy management systems (EMS) optimize power use within a facility, often by scheduling energy-intensive tasks during off-peak hours. Demand response, on the other hand, reacts dynamically to grid conditions.
For example, an EMS might pre-cool a building in the early morning to take advantage of lower electricity rates. A demand response system, however, may temporarily reduce HVAC output in the afternoon when the grid is under strain, preventing widespread outages. Both strategies contribute to energy efficiency and cost savings, but the former plays a more immediate role in grid resilience.
Integration of Energy Ecosystem
For facility managers, participating requires integration across the entire energy ecosystem, including:
- Building Management Systems (BMS) capable of receiving and acting on demand response signals.
- HVAC Systems that can adjust output dynamically, especially inverter-driven systems like VRF heat pumps, which modulate power usage rather than simply switching on and off.
- Integration Solutions that bridge traditional mechanical systems (HVAC, water heating) with demand response platforms to automate participation.
In commercial buildings, HVAC accounts for a significant portion of electricity use — often more than 50% during peak demand. Implementing demand response in HVAC systems offers major grid stability benefits while minimizing occupant discomfort.
Scope for Integrators
At first glance, demand response may seem outside the scope of AV integration. But as commercial spaces become more interconnected, integrators play an important role in ensuring that it doesn’t disrupt mission-critical systems.
For example, many commercial AV installations — such as digital signage, videowalls or conferencing equipment — are high-power, non-essential loads that could be strategically managed under a demand response program. Integrators should engage in open dialogue with facility managers about:
- System prioritization: Identifying which AV equipment can safely reduce power draw during a demand event without disrupting operations.
- Automation strategies: Working with BMS or EMS platforms to coordinate AV power reduction based on pre-set rules.
- Safeguarding essential systems: Ensuring that critical AV infrastructure (such as emergency communication systems) is exempt.
By proactively addressing these concerns, integrators can position themselves as valuable partners in facility-wide energy management strategies.
Final Thoughts
That said, HVAC systems are at the core of most demand response programs, and the effectiveness of demand response in HVAC depends on the type of equipment installed. Traditional HVAC units, which operate in simple on/off cycles, may create occupant discomfort when they suddenly power down. In contrast, modern inverter-driven systems (like VRF units and ductless heat pumps) can smoothly ramp power usage up or down, preserving comfort while still responding to demand response signals.
For integrators working with BMS platforms, understanding the nuances of HVAC control can be an advantage. When integrated properly, demand response and AV automation can work together to optimize building performance without sacrificing occupant experience.
Many regions have existing or pending legislation mandating demand response integration, but the United States is more of a patchwork. States with high energy demand — such as California, Texas and those in the Northeast — offer stronger incentives for participation. Programs often include rebates and financial compensation for facilities that enroll in the automated demand response initiatives. In these regions, integrators may find new business opportunities supporting clients in compliance and automation.
As facilities evolve, integrators who understand demand response — and how it interacts with energy management, building automation and AV systems — will be better equipped to provide value to their clients. The future of integration isn’t just about connecting AV components — it’s about ensuring the entire facility works intelligently with the power grid.
Manuel Delgado is head of innovation, Airzone.
