Demand response programs, which aim to achieve stability on the grid by ensuring that demand does not exceed supply of electric power, have been offered to many electric customers in the U.S. for decades.
In the last ten years, utilities and grid operators have adopted new technologies and practices to move demand resources to the next evolutionary phase, offering more advanced types of demand response schemes. According to a new tracker report from Navigant Research, at least 1,342 demand response programs are now underway worldwide – 95 percent of them in North America.
“Demand response continues to exhibit strong growth in North America, but it is also showing increasing adoption in other regions, particularly in Europe and Asia Pacific,” says senior research analyst Marianne Hedin. “A growing number of utilities and grid operators, in countries such as the United Kingdom, France, Australia, New Zealand, China, Hong Kong, South Africa, Japan, and South Korea, have actively taken steps to implement or expand their demand response offerings.”
Demand response falls into four market models, each addressing different objectives: capacity, economic programs, ancillary services and energy trading. The capacity and economic market objectives account for the majority of the overall market, in terms of the number of programs.
The energy-trading and ancillary services markets are very small, with a combined total of only 25 programs, accounting for less than 1 percent of overall demand response, according to the report.