Grid Flexibility: Smarter Demand Response with Thermal Insights - MyHEAT

Between heatwaves, cold snaps, electrification, and aging infrastructure, it’s not a relaxing time to be managing power supply and demand in North America.

If you’re a utility program manager or implementer, you already know that keeping the lights (and ACs) on during peak times is getting trickier. That’s where grid flexibility comes in.

Grid flexibility is the ability to adjust energy demand, shift usage to lower-stress times, and avoid “we’re over capacity” moments that can lead to blackouts or very expensive energy purchases.

One of the best-known tools to support flexibility is demand response (DR), but it’s time to challenge the one-size-fits-all playbook. What if you could identify which buildings can “hold their breath” during curtailment events and which ones start to panic the moment the HVAC goes quiet?

Spoiler: you can. And that’s where thermal performance (and MyHEAT) comes in.

Key takeaways

Grid flexibility is essential for managing peak demand, integrating renewables, and improving reliability across North America’s energy systems.
Demand response performance varies by building — thermal resilience plays a major role in how well a building can handle curtailments.
Not all buildings are created equal: High-performing “thermal batteries” can handle 6+ hour DR events, while leaky buildings may struggle within 1–2 hours.
MyHEAT’s Energy Loss Ratings help utilities target the right buildings for demand response, reducing opt-outs and increasing load shift potential.
Segmented DR strategies based on building performance deliver more grid value, better customer experience, and stronger long-term program outcomes.
Thermal insights also support energy efficiency pipelines, allowing utilities to convert poor-performing buildings into future DR assets.

What is grid flexibility?

Grid flexibility means being able to shift, reduce, or spread out energy use to match what’s available on the system. It’s a balancing act: supply on one side, demand on the other. The more flexible the demand, the easier it is to keep that scale even.

Flexibility might come from things like smart thermostats, time-of-use pricing, or DR programs. These are all good tools, but they work better when we’re asking the right buildings to participate.

Want to get up to speed on related innovations? Here’s what a smart grid is, and why it’s part of the bigger grid flexibility puzzle.

The problem with traditional demand response programs

Classic demand response programs often follow the same formula:

Ask customers to reduce usage
Offer a flat incentive
Cross your fingers and hope they’re still comfortable enough to stay in the program

Sound familiar? The problem is that some buildings just aren’t built for this. Their HVAC systems work overtime because the building leaks heat in winter or can’t hold cool air in summer. Turn off the AC and things go south fast, especially in leaky commercial spaces or older homes.

That’s how we end up with early opt-outs, short curtailment windows, and unhappy customers. And it’s also how we miss out on major grid value from buildings that could have gone longer, deeper, and delivered more relief.

Did you know: Buildings with poor thermal envelopes often consume the most energy, but they’re also the worst candidates for curtailment. It’s like asking someone with a paper straw to hold their breath the longest.

Using thermal performance to improve demand response outcomes

Here’s a fresh way to look at your demand response portfolio: some buildings are basically thermal batteries.

They can store thermal energy and coast through curtailments without losing their cool (literally). Others? They’re more like thermal sieves. One hour without HVAC and it’s an indoor sauna or icebox.

That’s why we created our Energy Loss Ratings, which measure a building’s heat loss and assign it a score from 1 to 10. Want a deeper dive into how that works? Check out how aerial thermal imaging helps measure energy efficiency.

Each building is rated from 1 to 10 based on its thermal performance:

1–5: These are high-performing buildings that can handle 6+ hour curtailments with ease.

6–10: These buildings have poor thermal envelopes and may struggle within 1–2 hours, making them better candidates for energy efficiency upgrades.

Using this information, you can tailor your program’s requests and incentives to match what each building is actually capable of.

Segmenting demand response by building type for better grid results

Let’s break down how you might approach different building types in your program:

1. Thermal batteries

Give these folks your biggest asks: longer curtailments, standard incentives. They’re built for it and will deliver real grid relief.

2. The in-betweeners

These have decent envelopes, but they’re not superstar level. Try some pre-conditioning before events: pre-cool or pre-heat to give them a head start, then ask for a shorter curtailment.

3. The thermal drains

These are your leakiest buildings. Asking them to turn off HVAC for hours will only backfire. Instead, offer them:

Shorter demand response events
Higher incentives
A warm invitation to join weatherization or retrofit programs

Tip: Use MyHEAT’s building-level insights to segment smarter. No more “spray and pray” DR marketing. Go straight to the buildings that can deliver the biggest bang for your grid buck.

How to improve commercial and industrial demand response programs

Here’s something we’ve learned from working with utilities across Canada and the US—your biggest energy users often have the worst thermal performance.

On paper, they look like great DR targets. In reality? Their buildings leak energy like a colander, and they can’t handle more than a short curtailment.

But don’t lose hope. There’s a hidden gem in your data. Around 3.13% of buildings in most areas have both high energy use and high thermal performance. These are your dream DR participants. They’re big enough to matter, resilient enough to handle longer curtailments, and low risk for churn.

This is exactly the kind of thinking we shared in our article on changing the game for program implementers.

Combining energy efficiency with grid flexibility for long-term success

What if your demand response and energy efficiency programs didn’t compete for attention but actually worked together?

With the right thermal insights, they can.

Here’s how:

Use thermal batteries for current DR events
Refer thermal drains to retrofit and efficiency programs
Track performance over time and re-evaluate as upgrades happen

This isn’t just better for the grid; it’s also more rewarding for your customers. They get tailored program experiences, realistic expectations, and incentives that actually match their effort.

Looking for more examples of how energy efficiency can drive long-term value? We’ve got you covered.

Tip: Want to make your retrofit program contractors happy? Give them a contractor-ready list with NAICS codes, energy data, and thermal ratings. It’s basically a dream sales lead sheet.

Scaling demand response and thermal targeting across your territory

Let’s talk scale for a sec. MyHEAT’s solution can analyze 50,000 to millions of buildings at a cost comparable to a postage stamp per building per year. That’s city-level coverage, building-level detail, and low cost. Not a bad combo.

We use high-resolution aerial thermal imagery to assess energy loss. If you’re wondering how this is different from FLIR cameras or smart meters, here’s a side-by-side comparison of FLIR thermal cameras vs. MyHEAT aerial imaging.

We make it easy for utilities to integrate our insights into:

Demand response program design
Participant targeting
Customer engagement platforms
Weatherization planning

Why thermal insights matter for grid flexibility program success

If you’re responsible for keeping your utility’s demand response programs effective, scalable, and customer-friendly, the old methods aren’t going to cut it anymore.

Thermal data is the missing layer that can:

Improve event success rates
Reduce opt-outs
Stretch curtailment windows
Lower program costs
Support long-term energy planning

Ready to supercharge your grid flexibility strategy?

Grid flexibility isn’t just about turning things off; it’s about turning data into action. When you match demand response programs with real building performance, everyone wins:

Your grid gets more reliable
Your programs become more cost-effective
Your customers stay comfortable (and happy)

At MyHEAT, we’re already helping utilities across North America identify their best demand response candidates and uncover future flexibility opportunities through efficiency upgrades.

Want to see what thermal targeting could do in your service area? Let’s make it happen.

Book a demo with our team
Explore our case studies to see real-world impact
Or just reach out — we’re friendly, we promise

Your grid’s future flexibility starts now. Let’s build it together.

FAQ: Grid flexibility and demand response programs

How does building thermal performance improve demand response outcomes?

Buildings with high thermal resilience (better insulation and airtightness) can maintain indoor comfort for longer periods during HVAC curtailment. This makes them ideal for longer-duration demand response events, delivering more reliable load reduction without affecting customer comfort.

Why is grid flexibility important for utilities right now?

Grid flexibility allows utilities to balance demand and supply more efficiently, especially during peak events or extreme weather. It reduces reliance on expensive peaker plants and supports the integration of renewable energy sources. Better flexibility means that programs like DR can scale without increasing customer churn.

What are the benefits of targeted demand response programs?

Targeting demand response based on building-level data (like thermal performance) helps utilities:

Reduce event opt-outs
Extend curtailment windows
Improve load shifting precision
Maximize return on program investments

This leads to more effective grid flexibility strategies with less customer disruption.

How can utilities identify buildings best suited for demand response?

With tools like MyHEAT’s aerial thermal imaging and Energy Loss Ratings, utilities can pinpoint buildings with strong envelopes that are best suited for sustained curtailments. These insights let utilities tailor demand response programs to match real-world building behaviour.

Can energy efficiency upgrades support grid flexibility goals?

Yes, absolutely. Buildings with poor thermal performance may not be ideal for current DR participation but are excellent candidates for energy efficiency upgrades. Over time, these upgrades improve building performance and increase future grid flexibility capacity.

How do thermal insights help scale grid flexibility programs?

By mapping energy loss across thousands (or millions) of buildings, utilities gain the ability to scale grid flexibility programs with precision. Instead of guessing who can participate effectively, utilities can segment and engage participants based on their actual performance