Demand response programs to reach $10 billion by 2023

Worldwide revenue from demand response programs will grow from $1.6 billion annually in 2014 to $9.7 billion in 2023, according to a report from Navigant Research.

Since 2010, demand response systems have matured in the electricity market and have been afforded the opportunity to bid directly against traditional power generation.

A number of factors point toward accelerating demand response adoption in North America and other regions of the world. In particular, the changing resource mix in electric grids globally is creating more potential for demand response to play a pivotal role in conserving energy use and maintaining grid stability.

“States like New York, Massachusetts, California, Hawaii and Maryland are at the forefront of grid modernization, and are transforming the utility business model to incentivize more active customer participation in DR programs,” says Brett Feldman, senior research analyst with Navigant Research. “At the same time, technology advances in metering, controls, and end-use devices are making it easier for customers to participate in DR programs and manage their energy usage.”

While North America will remain the largest market for demand response programs through 2023, demand response is also growing internationally, as Europe is poised to open more markets and the developed countries of Asia Pacific embrace automated demand response. Several countries in Europe are in the process of changing their electricity market structures, according to the report, and opening up more opportunities for demand response to compete against generators.

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The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at

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