Demand Response Capacity to Reach 196.7 GW in 2023

DRGlobal capacity for demand response will grow from 30.8 GW in 2014 to 196.7 GW in 2023, according to a study by Navigant Research.

There are a number of drivers that point toward increased demand response adoption in North America and other regions of the world, according to Commercial & Industrial DR, Residential DR, and DR Management Systems: Global Market Analysis and Forecasts. The changing resource mix in electric grids globally is creating more potential for demand response to play a pivotal role. As coal and nuclear plants retire, clean replacements are needed that can be built in short timeframes. Conversely, as large-scale intermittent renewable resources like wind and solar power fill in this gap, they require backup solutions when the wind is not blowing and the sun is not shining, the report says.

Currently, almost all of the demand response activity is taking place in the United States. This leadership position will erode over the next 10 years, as all world regions continue or start the pilot phase of demand response and then build out full-scale markets or programs, the report says.

The largest growth will occur in Asia Pacific, which will approach North America in terms of demand response capacity and spending by 2023. There are many distinct markets in Asia Pacific, like Australia/New Zealand, Southeast Asia, China, and Japan, all of which have distinct drivers for demand response growth, the report says.

Europe is a more unified story of moderate, methodical advancement based on a combination of opening market opportunities and renewable resource integration. demand response in Europe will not experience the rapid expansion that will occur in Asia Pacific, but it will have a faster growth pace than in North America as new market opportunities open, the report says.

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