US Leads Demand Response, But Not for Long

NavigantCurrently, almost all commercial and industrial demand response activity is taking place in the United States, says Navigant Research in its report “Demand Response for Commercial & Industrial Markets.

The first formal commercial and industrial DR programs in the United States began after the Enron crisis in California in 2001 and the Northeast Blackout in 2003. Since then, DR has enjoyed rapid growth in wholesale electricity markets around the country.

However, this leadership position is expected to erode over the next 10 years as all world regions continue or start the pilot phase of DR and then build out full-scale markets or programs. Research indicates that the largest growth will occur in Asia Pacific, which is anticipated to approach North America in terms of DR capacity and spending by 2023.

The Open Automated Demand Response (OpenADR) protocol appears poised to lead the way to an international standard for DR communications, which would streamline program development and reduce costs of deployment, says Navigant.

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