November 24, 2014
The spread of residential DR programs is closely tied to new approaches to designing the grid, report concludes
A recent report from Navigant Research analyzes the global market for residential demand response (DR) in five major geographic regions, including global market forecasts for residential DR sites, capacity, and revenue through 2023.
The development of smart grid technology – particularly advanced metering infrastructure (AMI) and smart, two-way communicating thermostats – is enabling utilities in many countries to offer residential demand response programs. These systems allow utilities to discreetly dispatch customers according to the load on the grid, and customers to control their own devices through mobile applications, giving them more control over their energy usage and spending. Click to tweet: According to a recent report from Navigant Research, worldwide revenue from residential DR is expected to grow from $332 million in 2014 to $2.3 billion in 2023.
“Advanced two-way thermostats are changing the business model for utility residential DR programs,” says Brett Feldman, senior research analyst with Navigant Research. “The so-called ‘bring your own thermostat’ model, in which consumers purchase thermostats at retail stores, can vastly reduce the acquisition costs for programs and lead to greater customer satisfaction, since they are the parties choosing their own devices and initiating the participation process.”
At the same time, residential DR will be an integral part of the development of a more resilient grid and the spread of microgrids, trends that have gained increased urgency following recent extreme weather events. The advent of grid modernization is closely tied to these new approaches to designing the grid, according to the report. In the United States, residential plug-in electric vehicles are being eyed as DR assets, and almost every domestic auto manufacturer has launched some sort of energy use optimization pilot.
The report, “Residential Demand Response,” analyzes the global market for residential DR in five major geographic regions. It provides an analysis of the market drivers and barriers, as well as global players and dynamics, associated with residential DR. Global market forecasts for residential DR sites, capacity, and revenue, broken out by DR program (DLC and dynamic pricing) and region, extend through 2023. The report also examines the main technologies related to residential DR and identifies the strengths and challenges of key industry players. 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, “Residential 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.