Dive Brief:
- Demand response markets around the world will grow more than 20% annually between 2014 and 2025, according to a new report by Transparency Market Research.
- The firm expects the global market for demand response to exceed $50 billion in the next decade, WhaTech reported.
Dive Insight:
As power demand grows worldwide the demand response market is expected to grow significantly, according to a new report by Transparency Market Research. The firm, reports WhaTech, is expecting a compound annual growth rate of 21.6% through 2025, and global market value will rise from approximately $5 billion to in excess of $50 billion.
According to the firm, the analysis "helps to understand the bargaining power of buyers, bargaining power of suppliers, the threat from substitute, threat from new entrant, and degree of competition in the global smart demand response market."
Federal regulators believe that in the United States, peak reduction from RTO and ISO demand response programs increased by 9.3% or 2,452 MW since 2012, to reach a total potential peak reduction of 28,798 MW in 2013.
According to a report issued by FERC in December, potential peak reductions from customers participating in RTO and ISO programs also increased as a percentage of total peak demand, ticking up from 5.6% of peak demand in 2012 to 6.1% in 2013.
