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Global Demand Response Trends 

  • December 2015
  • -
  • Frost & Sullivan
  • -
  • 50 pages

Summary

Table of Contents

Global Demand Response Trends : Expansion of Distributed Generation Intensified by the Need for Demand Management

Demand response (DR) models are enabling real-time analysis of customer demand trends and allowing the generation, transmission and distribution infrastructure to react accordingly. Growth in this market means utilities will increasingly invest in innovative technologies and predictive tools to reduce power generation costs as well as grid failures and outages. New communication technologies and supportive government regulations are imperative for its integration into the future energy system. This study provides a detailed evaluation of the growth opportunities around the world for DR solutions.

Key Questions

What is the definition of Demand Response?
Is the existing energy value chain structured correctly to meet Demand Response needs?
Do current technologies meet Demand Response needs or is additional development needed?
What are the key drivers and restraints affecting Demand Response?
How can Demand Response be beneficial to a distributed energy system?
Which are the key geographical hotspots driving Demand Response opportunities?

Key Findings

Energy efficiency is the key demand driver for implementing Demand Response (DR) programs. Grid instability and power outages due to capacity overload and stand-by demand for intermittent renewable power source drive the need for a resilient smart grid infrastructure. A Demand Response program enhances the ability of the grids to meet contingencies while providing customers the ability to manage their electricity spending.

• As a result of global warming and climatic change, government agenda across the world have been stressing the need to reduce emissions. The most important methods of carbon reduction is to increase the amount of electricity produced by highly efficient distributed and renewable generation technologies and well as implementing energy sufficiency policies.

• Demand Response programs have evolved into a complete demand-side management of energy and power. Extreme weather variations, declining energy reserves and increase in investment towards innovative distributed generation technologies have made it imperative for utilities to seek newer models supporting energy efficiency and energy management initiatives.

• Dynamic pricing and tariff structures are some of the more common tools used to implement demand response programs. Smart meters and thermostats are increasingly being implemented in Europe and Asia.

• The United Kingdom, China, Japan and South Korea are emerging markets where the benefits of demand response will help achieve the country’s emission targets while providing cleaner and efficient energy during peak times.

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