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Demand response revenues to hit $10 billion annually by 2023: Navigant

Iain Morris
June 10, 2014
 
Worldwide revenues from energy demand response programs will reach nearly $10 billion annually by 2023, according to the latest study from Navigant Research.

Demand response systems are used to conserve energy use and maintain grid stability and have matured considerably in the electricity market since 2010.

Among other things, the changing resource mix in electric grids globally is creating more potential for DR to play a pivotal role in energy management, says the market-research company.

Demand response programs generated some $1.6 billion in revenues in 2014, but Navigant expects the figure to increase to as much as $9.7 billion by 2023.

“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 demand response programs,” said 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 demand response programs and manage their energy usage.”

North America looks set to remain the largest market over the forecast period, but growth is accelerating internationally, adds Navigant.
Several countries in Europe are in the process of changing their electricity market structures, opening up more opportunities for demand response to compete against generators, while companies in the Asia-Pacific region are also set to embrace automated demand response, according to Navigant.
 
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