Automated demand response sites to grow ninefold as spending hits $1.9m

The number of automated demand response sites worldwide will grow from the current number of 217,000 to more than 1.9 million by 2023, according to a new report.

This will eqate to a rise in global spending on ADR from today’s $13m to $185m.

“As more intermittent renewable energy is added to power grids worldwide, more flexible and faster responding resources will be required to help balance loads,” said Brett Feldman, senior research analyst with Navigant Research which carried out the study.

Navigant found that as the power grid moves away from traditional central plants and towards more distributed resources to address future energy needs, demand response is a growing part of the resource base that electric system operators use to maintain reliability on the grid.

“Automated demand response will play a primary role in enabling the demand side to participate in these market opportunities,” added Feldman.

Navigant found that customer resistance is a key barrier to further ADR adoption.  Some customers, in both commercial and industrial and residential markets, are reluctant to give up control of its energy usage, according to the report

This reluctance is related to security concerns, production concerns in the case of an industrial facility, and comfort concerns for commercial buildings or households.

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