Peak Load Management Alliance & Skipping Stone
There is strong growth potential for demand response (DR), especially in the commercial sector, which was selected by more than 50 percent as the sector with the highest growth potential.
Most believe that to compel that growth, utility incentives or finance programs will be required to overcome the implementation cost barrier, which ranked as the highest impediment to customer adoption. Advances in technology were sighted as the second-highest requirement to achieving customer adoption.
The industry professionals surveyed also said a significant percentage of existing manual demand response customers will migrate to AutoDR.
Respondents overwhelmingly said the North American Electric Reliability Corp.’s (NERC’s) initiative to track DR will result in market acceptance as a reliability asset.
“The survey results confirm that demand response markets have a lot of room for growth as the market matures,” said Elliot Boardman, executive director of the Peak Load Management Alliance (PLMA). “Results further validate that market changes, such as the migration from manual to auto and the use of demand response as a reliability asset, are expected to have a positive impact on the marketplace.”
The survey demonstrates a call to action by utilities, regulators and finance companies to develop C&I programs or economic incentives, said Ross Malme, PLMA board member and Skipping Stone partner.
“Customers are willing and the grid needs demand response to work,” Malme said. “Technology costs have come down dramatically, and now it’s time for regulators to support utility incentive programs and for savvy finance companies to step in to capture this growth opportunity.”