Navigant Research forecasts spending in the global demand response management systems market to grow from $46.1 million in 2016 to $232.3 million in 2025.Brett Feldman, principal research analyst at Navigant Research, commented: “As the scale and complexity of DR programmes has increased over the last decade, operational reliability has become more critical, and the choices of communication protocols and devices have expanded.
“There is a need for more centralised management and control, similar to the power generation side of the electricity market,” added Feldman.
Driving the increase in revenue generation in the market is increased installation of demand response management systems by utilities to manage their demand response portfolio to meet ensure grid stability at the same time meeting mandates set by low carbon policies and regulations.
Utilities efforts to integrate and manage more renewable energy sources with the grid will drive the market growth.
Furthermore, utilities will increasingly make use of demand response management systems to improve customer services by helping consumers shift their usage from peak periods to off-peak times thereby lowering their energy costs.
[quote] The US headquartered energy market research firm predicts that the emergence of competitive retail providers of demand response management solutions will provide opportunities for growth of the market.
On the hand, the market growth will be negatively affected by the high cost of the technologies. Lack of knowledge on their operations will also restrain the market growth.
Demand response management systems rollout
The news follows an agreement between US utility Great River Energy and IT company Open Access Technology International (OATI) for provision of a demand response management system to help the utility firm centralise its operations.
Minnesota-based Great River Energy said it plans to use OATI’s webDistribute solution to centrally operate its suite of commercial and industrial load management programmes including its 28 member cooperatives’ businesses.
The cooperative began deploying the solution in a pilot to determine how webDistribute’s Conservation Voltage Reduction feature complies with its members’ grids.
The OATI solution is provided as a software-as-a-service, hosted from the OATI Private Cloud featuring the North American Electric Reliability Corporation critical infrastructure protection compliant data centers.
webDistribute will also provide functionality needed to automatically gather the data required for NERC's Demand Response Availability Data System reporting on an ongoing basis. [HECO files plans for demand response programmes].
Great River Energy is a non-profit electric cooperative generating and transmitting electricity to some 1.7m people in Minnesota region.
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