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Automated Demand Response Sites Will Reach Nearly 2 Million Worldwide by 2023

Feb. 26, 2014
ADR technology will help accelerate the adoption of distributed power generation, report concludes.

As the power grid moves away from traditional central power plants and toward more distributed energy resources to address future energy needs, demand response (DR) is a growing part of the resource base that electric system operators use to maintain reliability on the grid. Advanced technologies such as automated demand response (ADR), which automates the DR dispatch process without any manual intervention, are helping to speed this transition and enhance reliability along the way. According to a new report from Navigant Research, the number of ADR-equipped sites worldwide will grow from fewer than 217,000 in 2014 to more than 1.9 million by 2023.

“As more intermittent renewable energy is added to power grids worldwide, more flexible and faster responding resources will be required to help balance loads,” says Brett Feldman, senior research analyst with Navigant Research. “Automated demand response will play a primary role in enabling the demand side to participate in these market opportunities.”

Customer resistance is a key barrier to further ADR adoption. Some customers, in both commercial and industrial (C&I) and residential markets, are reluctant to give up control of its energy usage, according to the report. This reluctance is related to security concerns, production concerns in the case of an industrial facility, and comfort concerns for commercial buildings or households.

The report, “Automated Demand Response,” examines the global ADR market with a focus on two key sectors: C&I and residential. The study provides an analysis of the market drivers and challenges, as well as the key technologies, related to ADR. Global market forecasts for ADR sites, capacity, and spending, segmented by sector and region, extend through 2023. The report also analyzes the competitive landscape of ADR to identify and highlight the strengths and challenges of key players in the market.

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