Navigant Research forecasts the global market for demand response for renewables integration will generate $1.3 billion in revenue in 2026.Brett Feldman, principal research analyst with Navigant Research, commented: “Increasing penetration of intermittent renewable generation on the grid raises the risk of supply-demand imbalance, so grid operators will increasingly turn to DRRI as one resource to maintain system balance.
“Based on advancements in demand response technology and utility willingness to try new means of renewable balancing, DRRI is set to become a bigger piece of the flexibility investment picture.”
The ability of demand response to help utilities implement time of use energy tariffs, to ensure consumers avoid using energy when renewable energy generation is high, will drive the market.
In 2017, the market for demand response for renewables integration has generated $132.1 million in revenue.
Demand response, energy storage and renewables
Demand response, renewable energy and energy storage systems are being integrated by utilities in developing a smart grid.
Pacific Gas and Electric has awarded EDF Renewable Energy with a contract to construct 40MWh of battery energy storage capacity.
The energy storage systems will be installed for residential and commercial consumers to store renewable energy and use it during when demand and tariffs on the main grid are high.
Consumers will be able to gain extra revenue by participating in wholesale energy markets.
In addition to the energy storage batteries, EDF Renewables will provide consumers with its PEGASE energy management system to optimise consumer energy efficiency through improved management of the batteries and energy usage in line with the status of the grid and onsite energy generation.
Martin Wyspianski, PG&E Senior Director for Energy Portfolio Procurement and Policy,said: “As our clean energy portfolio grows, so does the importance of storage technology.
"These contracts and the storage capacity they represent will help us better integrate our growing renewable generation sources, and bring increased reliability to the grid. They are an important milestone in our progress toward a clean energy future.” [85 MW of capacity storage agreements for California]
Raphael Declercq, Vice President of Portfolio Strategy at EDF RE, commented, “We are thrilled to be the sole awardee in the behind-the-meter category. This contract will enable EDF RE to demonstrate its capabilities in the California storage market. The depth of resources and experience within the EDF Group positions us well to meet our customer’s expectations.”
Investor-owned utilities in California have set a target to achieve 1,325MW of energy storage capacity by 2020 under efforts expand renewable energy portfolios.
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