Increasing gap between energy supply and demand to drive DR market


The demand response market will be driven by an increase in the gap between energy supply and demand says the authors of a new report, Global Demand Response (DR) Market 2017-2021

According to the report, energy demand continues to grow as a result of increases in urbanisation and population over the last two decade.

Variations in load demand is making it difficult for utilities and energy generation companies to match supply and demand. This in turn drives the use of demand response technologies to ensure consumers shift heavy usage during times when demand is low to ensure the reliability of the grid system

Utilities’ efforts to reduce operational costs and delay investing in new energy generation infrastructure to meet growing consumer demands will drive increases in investments in the demand response market.

Moreover, utility companies are able to improve customer services by helping consumers reduce energy bills and gain extra revenue in the form of incentives by implementing demand response.

Furthermore, utilities’ grid modernisation will also drive market growth. For instance, increases in renewable energy portfolios at the expense of retiring convential generation resources will force the implementation of demand response.

Demand response market trends and constraints

The Internet of Things is the latest trend gaining momentum in the demnd response market, according to the report. Utilities are increasing use of IoT technologies to optimise power distribution  and improve communication with consumers and grid assets through automation.

Cybersecurity related issues remains a threat to the growth of the market. The report forecasts hacking of consumer data from smart meters and smart thermostats will hinder the growth of the market.

Automation processes implemented in sending, acquiring and processing data in demand response is forecasted to be vulnerable from unauthorised access as the number of demand response users increases.


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