Pike Research released a report early this year entitled “Demand Response for Industrial Markets.” The report examines the crucial role the industrial sector plays in successful demand response (DR) markets. DR providers and utilities are targeting the commercial and industrial (C&I) sector specifically to assist in balancing demand on the electric grid in times of stress. But, is this the best strategy for demand response? Or should DR change focus to the residential sector, which, according to EIA data, consumes more electricity in total?
The answer seems to be: stick with the industrial sector.
The report from Pike Research predicts that the growth of demand response will be considerable over the next few years. Globally, peak load curtailment currently amounts to about 26,849MW. By 2019, Pike estimates that number will grow to 62,084MW. That will equal a payment growth from $1.8 billion in 2013, to $4.3 billion by 2019.