September 17, 2014
Market rules changes could place more risk on DR resources, report concludes
A new report from Navigant Research examines the global DR market with a focus on two key sectors: commercial/industrial and residential.
Efforts to limit power generation by utilities and reduce peak loads on the grid, along with the changing resource mix in electric grids globally, are creating new demand for demand response (DR) programs. While the United States is leading the way in the DR market, utilities worldwide are finding new ways to incentivize more active customer participation in DR programs. Click to tweet: According to a recent report from Navigant Research, the total worldwide capacity of demand response programs is expected to grow from 30.8 gigawatts (GW) in 2014 to more than 196.6 GW by 2023.
“Technology advances in metering, controls, and end-use devices are making it easier for customers to participate in DR programs and to manage their energy usage,” says Brett Feldman, senior research analyst with Navigant Research. “At the same time, the retirement of large numbers of coal and nuclear plants, and the expansion of large-scale intermittent renewable resources like wind and solar power to fill this gap, are creating more need for backup solutions when the wind is not blowing and the sun is not shining. Demand response fills that need in an efficient and cost-effective way.”
As DR programs expand, though, the challenges are likely to grow as well. Market rule changes that attempt to standardize rules between DR and generation may put more requirements and risk on DR, according to the report. Also, as DR becomes a greater portion of the resource mix, it is likely to be relied upon more heavily. Thus, customer fatigue due to more DR events must be guarded against in order to maintain reliability and prevent customer attrition.
The report, “Demand Response”, examines the global DR market with a focus on two key sectors: commercial/industrial and residential. It provides an analysis of the regional market dynamics and players, global market drivers and barriers, and key technologies related to DR. Global market forecasts for DR sites, capacity, spending, and revenue, segmented by sector and region, extend through 2023. The report also analyzes the competitive landscape of DR to identify and highlight the strengths and weaknesses of the major players in the market. An Executive Summary of the report is available for free download on the Navigant Research website.
Contact: Richard Martin
* The information contained in this press release concerning the report, “Demand Response,” is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.