LONDON, March 1, 2016 /PRNewswire/ -- Consumers can lower power demand and help prevent widespread blackouts. At the same time, they can reduce their energy costs and carbon footprint. Demand Response (DR) was conceived and implemented to offer emergency response and peak load management. As the nature of grids evolves, DR has become a vital power system tool.
New analysis from Frost & Sullivan, Global Demand Response Trends (http://frost.ly/32), finds that while North America continues to be the hub of DR programs, European countries are making massive changes to their fuel mix with an ever increasing proportion of renewables. In Asia, South Korea and Japan are attractive markets, while the Australian market is still at the nascent stage. This research analyses the scope of DR on the demand side and studies the components of load reduction and load shifting.
For complimentary access to more information on this research, please visit: http://frost.ly/33.
"DR programs have evolved into a complete demand side management of energy and power," said Frost & Sullivan Energy & Environment Senior Industry Analyst Pritil Gunjan. "Extreme weather variations, declining energy reserves and the introduction of numerous distributed generation technologies have made it vital for utilities to seek newer models supporting energy efficiency and energy management initiatives."
Utilities are also attracted to DR programs due to their dynamic pricing and tariff structures. While the United States leads in terms of DR development, Europe and Asia are emerging as hot markets for smart meters and thermostats. The United Kingdom, China, Japan and South Korea have recognised the value of DR in helping them achieve their emission targets while providing cleaner and efficient energy during peak times.
It is crucial to further stoke this interest in DR through regional regulations and policies that will facilitate coordination and integration efforts between utilities and consumers. With governments across the world promoting the use of renewable energy (RE) resources, DR management will play a crucial role in integrating RE sources into the grid during peak demand times.
Significantly, aggregators will play an important role across the DR value chain by managing energy system integrations. Utilities in the distributed generation market will seek to actively resolve regulatory and market challenges so they can optimally tap the aggregator-utility model.
The sharing of costs and benefits accrued from DR models across the various stakeholders is another point of contention. Utilities are looking to mitigate this problem and encourage the adoption of DR programs by offering greater clarity on the issues of tariff and financial incentives in their business models.
"RE investments and distributed generation, which are top trends in the global energy market, will also greatly boost the DR market beyond 2020," noted Gunjan. "The higher investments in innovative technology will aid the smoother roll out of DR programs. Customer interfaces and automated technologies will enable a transparent and secure DR implementation."
Global Demand Response Trends is part of the Energy & Power (http://frost.ly/34) Growth Partnership Service program. Frost & Sullivan's related studies include: Global Artificial Lifts Market, Global Smart Electricity Meter Market, Eagle Ford Shale Basin and Asia-Pacific Switchgear Market—2015 Update. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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SOURCE Frost & Sullivan