Residential Demand Response Participation Rate Will Reach Sixteen Percent Worldwide by 2018, Forecasts Pike Research
BOULDER, Colo.--(BUSINESS WIRE)-- Demand response (DR) is becoming an important part of the resource mix for utilities and grid operators, especially in managing peak electricity demand. Utilities face significant challenges, however, in rolling out DR programs to large numbers of their residential customers. According to a recent report from Pike Research, a part of Navigant's Energy Practice, the worldwide participation level of residential demand response programs will reach only 16.4 percent by 2018, among households with access to such programs.
"Utilities around the world are gradually realizing the potential benefits of introducing demand response programs to their residential customers," says senior research analyst Marianne Hedin. "While the total number of households participating in demand response programs will be more than 23 million in 2018, that still represents a relatively small fraction of the total addressable market."
Among the forces constraining more rapid growth in the residential DR market are consumer backlash to smart meters, the cost of delivering demand response to residential customers, and an overall lack of consumer engagement with and interest in this option. Pricing programs that rely on dynamic pricing, which offer consumers a clear financial incentive for adoption of DR, will be the fastest growing segment of the residential DR market.
The report, "Residential Demand Response", examines the developing global market for residential demand response programs, including technology issues, market drivers and barriers, and regulatory factors. The report includes detailed comparisons of price-based and direct load control DR programs as well as profiles of 17 key market players. Market forecasts for residential DR participation, spending, and load curtailment (in megawatts), segmented by region, are provided through 2018. 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, "Residential Demand Response," 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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