More Than 1,300 Demand Response Programs Are Underway Worldwide, According to Navigant Research
BOULDER, Colo.--(BUSINESS WIRE)-- Demand response (DR) programs, which aim to achieve stability on the grid by ensuring that demand does not exceed supply of electric power, have been offered to many electric customers in the United States for decades. In the last ten years, utilities and grid operators have adopted new technologies and practices to move demand resources to the next evolutionary phase, offering more advanced types of DR schemes. According to a new tracker report from Navigant Research, at least 1,342 DR programs are now underway worldwide - 95 percent of them in North America.
"Demand response continues to exhibit strong growth in North America, but it is also showing increasing adoption in other regions, particularly in Europe and Asia Pacific," says senior research analyst Marianne Hedin. "A growing number of utilities and grid operators, in countries such as the United Kingdom, France, Australia, New Zealand, China, Hong Kong, South Africa, Japan, and South Korea, have actively taken steps to implement or expand their DR offerings."
DR falls into four market models, each addressing different objectives: capacity, economic programs, ancillary services, and energy trading. The capacity and economic market objectives account for the majority of the overall market, in terms of the number of programs. The energy-trading and ancillary services markets are very small, with a combined total of only 25 programs, accounting for less than 1 percent of overall DR, according to the report.
The report, "Demand Response Tracker 2Q13", provides data on the different types of DR programs that address each of the four market models, such as direct load control, interruptible load, critical peak pricing, real-time pricing, time-of-use, ancillary services, and demand bidding or day-ahead bidding schemes. The report also covers programs focused on the major customer segments, including the commercial, industrial, agricultural, and residential sectors, and details the amount of load curtailment and the number of program participants, along with technology used and vendor partnerships whenever such information is available. An Executive Summary of the report is available for free download on the Navigant Research website.
About Navigant Research
Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.
Navigant (NYS: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.
* The information contained in this press release concerning the report, "Demand Response Tracker 2Q13," 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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