What does 'demand' refer to in energy terms?

In energy terms, 'demand' specifically refers to the amount of power delivered to customers at any given moment. This is a critical concept because it represents the instantaneous need for electricity, which utilities must meet to maintain system reliability.

Understanding demand is essential for utility companies as they need to plan for peaks and ensure they have enough capacity to handle the highest levels of usage. It is typically measured in kilowatts (kW) and reflects real-time consumption, which is crucial for grid management and resource allocation.

While maximum energy capacity relates to the total potential output of a power generation source, and average power used refers to the mean consumption over a time frame, demand focuses strictly on the current consumption requirements. Total energy consumed conveys a broader picture over time but does not capture the immediacy that demand signifies. Thus, the definition of demand encompasses the live interaction between the energy provision system and customer consumption needs.