Revenue from Demand Response for Commercial Buildings Will Surpass $712 Million Annually by 2018

May 3, 2013

Accounting for a substantial amount of electricity consumption, the commercial sector is a major – but underserved – market for demand response (DR).  Building owners and operators are increasingly interested in DR offerings, and utilities are tailoring their DR services for the commercial sector.  According to a recent report from Navigant Research, annual revenue from demand response services for commercial buildings will reach $712.5 million by 2018.

“To date, the majority of the commercial customers engaging in DR programs have been large businesses and institutions,” says Marianne Hedin, senior research analyst with Navigant Research.  “Now, utilities, grid operators, and curtailment service providers are turning their attention to underserved small and medium-sized commercial business and institutional customers, which account for a significant number of facilities and sites that can contribute a considerable amount of load curtailment during a peak event.”

Growth in DR for commercial sites is also being driven by expanding deployments of smart meters and advanced metering infrastructure, which are expected to pick up in the small and medium-sized market segment.  This development will make it considerably easier for businesses and institutions to participate in the economic DR market, where they can take advantage of dynamic pricing to obtain reduced rate structures, according to the report.

The report, “Demand Response for Commercial Buildings”, provides a detailed examination of the growing worldwide market for demand response in the commercial sector. The market opportunity and technology issues for DR in commercial facilities are explored, and market drivers and inhibitors are examined. The report also includes in-depth analyses of regional trends and profiles of 19 key industry players, along with market forecasts for load curtailment and revenue, segmented by region and by segment, through 2018.  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 for Commercial Buildings,” 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.

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