Global annual revenues in the form of curtailment payments for load reductions for industrial customers participating in demand response programs, will reach $4.3 billion by 2019, according to report by Navigant Research.
The report, "Demand Response for Industrial Markets", examines the global market for industrial demand response, detailing the breakdown of peak load curtailment into two major customer segments: small/medium and large/very large industrial customers.
The report provides data on how much these different industrial DR participants receive in payments from utilities, grid operators, or aggregators when they reduce their load at peak times.
“Because industrial power users can contribute unusually large amounts of load reduction — even from just one plant — the industrial sector offers unique opportunities for demand response,” says Marianne Hedin, senior research analyst with Navigant Research.
“The financial incentives paid by utilities, grid operators, and curtailment service providers often represent a substantial annual revenue stream to industrial customers, especially those who are able to curtail a large amount of load.”