Commercial & Industrial and Residential Demand Response: Global Capacity, Sites, Spending, and R

Market Data: Demand Response

Commercial & Industrial and Residential Demand Response: Global Capacity, Sites, Spending, and Revenue Forecasts

Demand response (DR) is an older concept that harkens back to when it was first employed in the United States in the 1970s. At that time, DR was implemented as a component of the energy conservation focus of demand-side management (DSM) programs. It aimed to encourage consumers to use less electricity during peak hours or shift their energy use to off-peak times. Utilities have run residential direct load control (DLC) programs as forms of demand management and have offered interruptible rates to commercial and industrial (C&I) customers for many years.

Since 2010, DR has matured in the electricity market and has been afforded the opportunity to bid directly against generation. However, it has also fallen under greater scrutiny. As DR has become a larger part of the resource base, regulators and other market participants are calling for tighter requirements to ensure reliable operations and efficient markets. There are general economic market factors (e.g., low natural gas prices and coal and nuclear retirements) that affect the growth path of DR, as well. While the region of greatest adoption is expected to be North America (primarily centered in the United States), other regions will eventually start to implement DR programs and markets. According to Navigant Research, global DR capacity is expected to grow from nearly 39 GW in 2016 to 144.0 GW in 2025.

This Navigant Research report examines the global DR market in five major regions, with a focus on C&I and residential DR. The study provides an analysis of the market issues, including drivers and barriers, associated with DR development. Global market forecasts for capacity, spending, and revenue, segmented by region and sector, extend through 2025. The report also examines the key global technologies and program design trends related to DR.

Key Questions Addressed:

What market drivers are incentivizing demand response (DR) to expand in the United States and abroad?
What factors may inhibit global DR development and expansion?
Which new technologies and program models are enabling DR to increase its penetration globally?
How quickly will DR grow in various regions around the world?

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