The Battle Group has released the results of a study conducted to analyse the US energy flexibility and demand response market.
According to the study:
- The US has the potential to generate nearly 200GW of cost-effective load flexibility by 2030
- Load flexibility can meet up to 20% of the country’s total peak load by 2030
- Demand response capacity likely to triple by 2030
- Load flexibility can avoid more than $15 billion in annual energy costs
- Utility load flexibility programmess will become smarter before they get bigger, by first modernising existing demand response programmes to tap into their underutilised potential
- Residential load flexibility additions will exceed those of larger commercial and industrial customers, despite having only a 30% share of the current demand response market
- New regulatory incentives will be a primary driver of growth in load flexibility, due to renewed industry-wide interest in regulatory models that encourage utilities to pursue demand-side initiatives rather than capital investment in infrastructure
Ryan Hledik, principal at Battle Group, said: “The potential for load flexibility to facilitate the transition to a decarbonised power system is remarkable and currently overlooked.
“Our study demonstrates the importance for utilities and regulators to look beyond conventional ‘DR 1.0’ options when analyzing new demand-side opportunities.”
To download the study, visit The National Potential for Load Flexibility: Value and Market Potential Through 2030