Peak Load Reduction from Industrial Demand Response Programs Will Grow by Nearly 15 Percent Per Year
Peak Load Reduction from Industrial Demand Response Programs Will Grow by Nearly 15 Percent Per Year Through 2019, Forecasts Pike Research
BOULDER, Colo.--(BUSINESS WIRE)-- The industrial sector offers unique opportunities for demand response (DR), because it is able to contribute unusually large amounts of load reduction - even from just one plant. As DR is increasingly adopted in many countries around the world, industrial facilities will become a critical customer segment. According to a new report from Pike Research, a part of Navigant's Energy Practice, industrial DR, as measured by peak load reductions, will grow steadily over the remainder of the decade, expanding by 14.7 percent per year from 2012 to 2019.
"Thanks to its long history of DR and early adoption of automated DR, the United States has led the way with respect to the use of industrial DR," says senior research analyst Marianne Hedin. "Today, though, other countries, including Canada, the United Kingdom, France, South Africa, Israel, China, Japan, South Korea, Australia, and New Zealand, are either increasing the pace of adoption or conducting pilots to explore the feasibility and value of industrial DR programs."
The set of industries that are involved in DR programs includes many discrete and process manufacturers, such as producers of cement, chemicals, steel, paper and pulp, food and beverages, information technology, construction and building materials, and many more. In addition, oil refineries and agricultural plants potentially have a big role to play in industrial DR, according to the report. Because irrigation systems, for example, require significant consumption of electricity, an agricultural facility can reduce a great deal of load.
The report, "Demand Response for Industrial Markets", examines the global market for industrial demand response, detailing the breakdown of peak load curtailment into two major customer segments: small/medium and large/very large industrial customers. The report provides data on how much these different industrial DR participants receive in payments by utilities, grid operators, or aggregators when they reduce their load at peak times. The market forces and competitive landscape are explored in depth, and 21 industrial DR vendors are profiled. The report also provides forecasts for industrial peak load curtailment, in terms of capacity, and reduction payments, broken down by region and by market segment. An Executive Summary of the report is available for free download on the Pike Research website.
About Pike Research
Pike Research, which joined Navigant's global Energy Practice on July 1, 2012, provides in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Pike Research can be found at www.navigant.com/pikeresearch.
Navigant (NYS: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.
* The information contained in this press release concerning the report, "Demand Response for Industrial Markets," is a summary and reflects Pike Research's current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Pike Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.
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