Market researcher Navigant Research has stated in a report that the worldwide revenue for demand response (DR) programmes will grow from $1.6 billion in 2014 to $9.7 billion in 2023.
The report concluded that North America will remain the largest DR market but growth is accelerating internationally. By 2023, the global capacity of DR systems will grow to 196.7GW according to the report.
Several European countries are changing their electricity market structures, providing more possibilities for DR to compete successfully against traditional electricity generation, Navigant Research stated.
The changing resource mix in electric grids globally is increasing the potential for DR systems to play a key role in conserving energy use and maintaining grid stability. General economic market factors such as natural gas prices, coal and nuclear retirements affect the growth of DR as well. Since 2010, DR systems are making their way in the electricity market and compete against traditional electricity generation. Also the DR market in Asian Pacific countries is growing.
“Technology advances in metering, controls, and end-use devices are making it easier for customers to participate in DR programs and manage their energy usage”, said Brett Feldman, senior research analyst at Navigant Research.
The report focuses on commercial/industrial and residential sectors. An executive summary of the report is available for free download on the Navigant Research website: http://www.navigantresearch.com/research/demand-response