2019 Utility Demand Response Market Snapshot Highlights

Executive Talking Points

  • In 2018, utilities reported a demand response enrolled capacity of 20.8 GW and dispatched capacity of 12.3 GW.
  • The C&I market segment contributed to the majority of total reported enrolled demand response capacity.
  • Demand response could deliver $15 billion per year of savings by 2030.
  • New advanced applications allow for a more integrated approach to demand response and the provision of grid services.
  • Regulatory mandates provide incentives for demand reductions and motivating utilities to expand demand response through the integration of programs.
  • Mass market demand response accounted for 7.4 GW of enrolled capacity and 4.3 GW dispatched.

Demand Response Capacity Program Types

35% 

of utility respondents offered AC switch programs

 28%

offered water heater programs

Enrolled Demand Response Capacity Markets

Commercial and Industrial Customers

  • Contribute to the Majority of Demand Response
  • Have Increasing Program and Technology Options
  • Are Using Demand Response an Alternative to Generation Capacity
  • Are Leveraging Programs as Non-wires Alternatives

Industry Trends: Advanced Applications of Demand Response

68%

of participating utilities show they are interested, planning, piloting, or are currently offering a demand response pairing with solar, storage, and other technologies to provide more reliable demand reduction.

 

Benefits of Using Advanced Technology with Demand Response for Utilities:

– Use different DERs to help manage load
– Better account for increasing penetration of renewables
– Engage with customers
– Aim to provide larger savings
– Provide diverse solutions and multiple grid services
– Called on more frequently due to their flexibility

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