demand response
Image credit: Stock

Commercial and industrial consumers are expected to expand their demand response capacity by 60% between 2020 and 2029, according to a new study issued by Guidehouse Insights.

Global demand response (DR) capacity is expected to increase from 39.8GW to 64.3GW during the forecast period.

The need by utilities in developed economies in North America and Europe to leverage DR programmes to optimise a variety of grid-connected distributed energy resources will drive the market growth.

Moreover, the programmes can assist with capacity constraints, aging infrastructure, and grid stability.

Related articles:
Guatemala utility implements ToU rates thanks to Landis+Gyr
European TSOs platform unlocks the flexibility of consumer-based devices

In more nascent regions, commercial and industrial demand response capacity is laying the groundwork for possible future demand response growth by engaging small numbers of customers with large load to improve grid stability

The market is expected to grow at a steady, moderate rate over the forecast period. On the other hand, factors including subsidized resources in competitive markets, a failure to compensate available capacity, and limited utility visibility into behind-the-meter resources will hinder the market.

Jessie Mehrhoff, a research analyst with Guidehouse Insights, said: “Factors driving growth of CIDR programs are expected to vary due to overall market maturity, geography, utility market designs, and regulatory landscapes.

“Driven by capacity constraints, aging infrastructure, and desire for improved grid stability, CIDR programmes also benefit from local climate and emissions targets, corporate sustainability initiatives, and utilities that want to improve customer engagement.”

Click here for more information about the report.