BOULDER, CO—A new report from Navigant Researchexamines the global demand response (DR) marketwith a focus on two key sectors: commercial/industrial andresidential.

Efforts to limit power generation by utilities and reduce peakloads on the grid, along with the changing resource mix in electricgrids globally, are creating new demand for DR programs. While theUnited States is leading the way in the DR market, utilitiesworldwide are finding new ways to incentivize more active customerparticipation in DR programs. According to a recent report fromNavigant Research, the total worldwide capacity of demand responseprograms is expected to grow from 30.8 gigawatts(GW) in 2014 to more than 196.6 GW by 2023.

“Technology advances in metering, controls, and end-use devicesare making it easier for customers to participate in DR programsand to manage their energy usage,” says BrettFeldman, senior research analyst with Navigant Research.“At the same time, the retirement of large numbers of coal andnuclear plants, and the expansion of large-scale intermittentrenewable resources like wind and solar power to fill this gap, arecreating more need for backup solutions when the wind is notblowing and the sun is not shining. Demand response fills that needin an efficient and cost-effective way.”