Residential Demand Response Sites Expected to Reach Nearly 65 Million by 2023, According to Navigant Research Report
Half of residential DR sites to be linked to dynamic pricing programs by 2023, report concludes
BOULDER, Colo.--(BUSINESS WIRE)--Residential demand response (DR), in the form of programs designed to encourage consumers to use less electricity during peak hours and to shift their energy use to off-peak times, has been around since the 1970s. Today, with the development of advanced metering infrastructure (AMI) and smart, two-way communicating thermostats, the technological and market limitations to demand response are being overcome. Click to tweet: According to a new report from Navigant Research, the total number of worldwide residential demand response sites is expected to grow from 6.8 million in 2014 to 64.8 million in 2023.
“As AMI is deployed around the world, residential DR follows closely behind”
“As AMI is deployed around the world, residential DR follows closely behind,” says Brett Feldman, senior research analyst with Navigant Research. “AMI allows for near real-time access to interval meter data, so residential DR programs will migrate from the traditional long-lead time command and control model to more customer-friendly, flexible, and price-based methods.”
As the overall market for residential DR expands, the number of sites linked to dynamic pricing programs will also grow rapidly, according to the report. Today, 88 percent of residential DR sites are part of direct load control programs, which pay customers an annual fee for agreeing to have a control device installed on their air conditioners, and only 12 percent are associated with dynamic pricing systems, which bill customers different rates for different time periods. By 2023, that split is expected to be closer to 50/50, according to the report.
The report, “Residential Demand Response,” analyzes the global market for residential DR in five major geographic regions. It provides an analysis of the market drivers and barriers, as well as global players and dynamics, associated with residential DR. Global market forecasts for residential DR sites, capacity, and revenue, broken out by DR program (DLC and dynamic pricing) and region, extend through 2023. The report also examines the main technologies related to residential DR and identifies the strengths and challenges of key industry players. 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, and Smart Buildings sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.
Navigant 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, “Residential Demand Response,” 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.