Automated Demand Response Spreads Worldwide

NavADRDemand response (DR) is a growing part of the resource base as grid operators have come to rely on it to maintain a stable and reliable electric system. A new report from Navigant Research examines the US market and also considers the likelihood that it will spread worldwide in the coming years.

Automated demand response (ADR) describes a system that automates the DR dispatch process, from the grid operator to the DR aggregator to the end-use customer without manual intervention.

Economic pressures, environmental regulations and a greater use of distributed resources are simultaneously cutting into the base of centralized power plant, as well as the integration of more intermittent renewable resources.

Barriers to ADR deployment also exist, as many C&I and residential customers do not want to give up control of energy usage.

Currently, almost all of the ADR activity is taking place in the United States. This leadership position will erode over the next 10 years as all international regions continue or start the pilot phase of ADR and then build out full-scale markets or programs. The largest growth will occur in Asia Pacific, which may overtake North America in terms of ADR capacity and spending after 2020. There are many distinct markets in Asia Pacific, like Australia/New Zealand, Southeast Asia, China, and Japan, all of which have distinct drivers of ADR growth. Europe is a more unified story of moderate, methodical advancement based on a combination of opening market opportunities and renewable resource integration.

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