Report predicts demand response boom in Asia-Pacific

The demand response market in Asia is buoyant in Japan and Singapore, with other countries expected to follow suit, according to a new report.

It forecasts that Japan is set to become the largest DR market in the Asia-Pacific, with accumulated demand response resources of 20 GW by 2025, followed by South Korea with 13 GW.

The study from analysts at Frost & Sullivan found that Asia-Pacific’s liberalized electricity sector “is attracting active participation from private companies and customers in the demand response market”.

It states that Japan and Singapore have already developed DR regulations and “are in the process of testing DR to assess its viability and arrive at the right mix of incentives to encourage private participation. Most nations will start implementing best-fit solutions post 2020, following which the market is expected to experience accelerated growth.”

Melvin Leong, associate director for Energy & Environment at Frost & Sullivan, explained: “While developing countries are yet to take to DR, developed countries like Japan, Australia, South Korea, and Singapore are proving enthusiastic adopters, mainly due to their widespread smart meter rollouts.

“While commercial and industrial rollouts were completed in most of these countries, residential installations are in progress and will be key to customer participation.”

He added that in addition to smart meters, “smart home appliances and their interoperability with home energy management systems will be vital for effective DR operation”.

Frost & Sullivan’s analysis, Growth Opportunities in the Asia-Pacific Demand Response Market, Forecast to 2025, examines market revenue forecast by country, market share analysis, trends for the next eight years, and competitors’ capability matrix. It also covers novel business models and analyzes the ability of the current technologies to meet market demand.

Leong noted that “for efficient communication among connected appliances, the network operation centre, and DR management system, these components need to be standardized. Participants are working on addressing this market requirement, as well as the need to incentivize DR programmes.”.

“On the other hand, the absence of government incentives is prompting aggregators to offer free load scheduling services and discounts on DRMS installations, thereby boosting customer participation.”

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