T&D World Magazine
Revenue from Demand Response for Commercial, Industrial Expected To Be $38B Through 2023

Revenue from Demand Response for Commercial, Industrial Expected To Be $38B Through 2023

Commercial and industrial demand response programs are coming under greater scrutiny as market evolves, report finds

A recent report from Navigant Research examines the demand response (DR) market for the commercial and industrial (C&I) sector, including global market forecasts for capacity, sites, and revenue through 2023.

Following the Enron crisis in 2001 and the Northeast Blackout in 2003, DR programs began to take off in wholesale electricity markets around the country.  Originating mainly as side programs that did not directly participate in the markets, large industrial customers began signing up and, gradually, smaller C&I customers followed, giving rise to today’s maturing market. According to a recent report from Navigant Research, total C&I DR revenue is expected to reach nearly $40 billion from 2014 through 2023.

“As the market continues to grow, however, C&I DR costs for hardware, software, and communications are expected to begin to decline as technology advances and less hardware is required,” says Brett Feldman, senior research analyst with Navigant Research.  “We also expect that the market will continue to evolve as tighter requirements are enforced by regulators.”

As DR becomes an even larger part of the resource base, according to the report, regulators and other market participants are proposing new policies to ensure reliable operations and efficient markets.  Along with general economic market factors, such as low natural gas prices and coal and nuclear retirements, this increased regulatory scrutiny is also expected to affect the growth path of C&I DR.

The report, “Demand Response for Commercial & Industrial Markets,” examines the C&I DR market in five major geographic regions.  The study provides an analysis of the major market drivers and barriers, as well as global market players and dynamics, associated with C&I DR.  Global market forecasts for C&I DR capacity, sites, and revenue, broken out by segment and region, extend through 2023.  The report also examines the key technologies related to C&I DR, as well as the competitive landscape.

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