The growth of the demand-side management market is projected to be driven by global utilities efforts in reaching their energy efficiency and demand response (DR) targets.
Navigant Research said it predicts global utilities will increase their energy usage reduction targets to stabilise their grid networks.
By increasing their energy conservation targets, utilities will also aim to meet carbon emission reduction targets set under state, regional and international environmental policies.
The ability of integrated demand-side management technologies in helping consumers to reduce their energy costs is also expected to drive the market growth.
Furthermore, national regulatory authorities and regional boards are expected to implement policies which will support the growth of the integrated demand-side management market during the forecasted period.
[quote] In a press statement, Navigant said grid modernisation efforts such as increased integration of distributed generation resources with grid networks, will push utility firms to increase their demand-side management initiatives to ensure they have a constant supply of energy at all times.
North America is expected to dominate the integrated demand-side management market and generate revenue amounting to $405 million by 2025.
Paige Leuschner, research analyst at Navigant, said: “Key drivers that take technical, policy, and economic factors into account are pushing the IDSM market forward.”
However, utilities failure to adopt new business models and inadequate investments to fund implementation of demand-side management projects is expected to hinder the growth of the market.
Demand-side management market growth
Efforts by utilities in the US to expand their demand-side portfolios include a contract signed between Con Edison and energy management firm Power Efficiency Corporation for rollout of DR programme in New York state.
Under the deal, Power Efficiency Corporation will provide the utility company with 12MW of DR energy in the summer months of 2017 and 2018.
The solutions provider won the contract in an auction in which Con Edison signed multiple DR contracts to avoid $1 billion in grid infrastructure investment in Brooklyn and Queens administrative divisions.
The utility firm said it plans to reduce 52MW of peak load in Brooklyn through the implementation of the programmes.
However, Con Edison has thus far signed contracts for 41MW of DR energy during the summer months. [Con Edison reduces peak demand with battery storage].
The programmes will include the deployment of both customer and non-traditional utility DR solutions.
Image credit: www.prismapoint.com.