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Demand Response Industry Report

March 11, 2015 By Josh Kessler

EnerKol Research published a report last week that shows historic and forecasted growth in demand response (DR) and provides guides for both DR providers and beneficiaries across different regions. The report, as suggested by the title, Demand Response to Grow Under Alternative Scenarios Regardless of FERC 745 Outcome, explores multiple scenarios that could play out in DR markets.

A summary of the report from Breaking Energy says that the effect will vary by the structure and enrollment of DR in different markets. The PJM region, which covers states in the Mid-Atlantic and Midwest, is set to make $20 billion in DR capacity payments and could see the greatest disruption.

The chart below shows how many MW of DR resources participated in capacity markets from 2009 to 2014 in PJM, ISO-New England, NYISO, and MISO. Based on the data in the chart, DR serves as an important capacity resource in PJM and ISO-New England—and can provide DR participants with attractive pricing. In NYISO, DR program participation has decreased in recent years, while it never took off in MISO.

DR Growth 2009-2014

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