According to a recent report from Navigant Research, worldwide revenue from residential demand response (DR) is expected to grow from $332 million in 2014 to $2.3 billion in 2023.
The development of smart grid technology such as advanced metering infrastructure (AMI) and smart, two-way communicating thermostats is enabling utilities to offer residential demand response programs.
These systems enhance utilities to dispatch customers according to the load on the grid. The customers can control their own devices through mobile applications, providing more control over their energy usage.
Advanced two-way thermostats are changing the business model for utility residential DR programs, says, Brett Feldman, senior research analyst, Navigant Research.
The bring your own thermostat model, in which consumers purchase their own thermostats can reduce the acquisition costs for programs and lead to greater customer satisfaction, since they are the parties choosing their own devices and initiating the participation process, added Feldman.
Meanwhile, residential DR will be an integral part of the development of a stronger grid and the spread of micro-grids, trends that have gained increased urgency.
The advent of grid modernization is linked to these new approaches to designing the grid, according to the report.
In the United States, residential plug-in electric vehicles are considered as DR assets, with every domestic auto manufacturer launching some sort of energy use optimization pilot.
The report analyzes the global market for residential DR in five major geographic regions, including market forecasts for its sites, capacity, and revenue.
Sabeena Wahid
editor@greentechlead.com