Demand Response: Growth Factors and the Future
Demand response (DR) – temporary changes to electric loads in reaction to conditions in the grid – now accounts for 7.6 percent of U.S. peak demand and could reach 20 percent in the future, according to a Federal Energy Regulatory Commission estimate.
But why have DR programs gained traction in some regions and not others? An Institute for Building Efficiency study explored that question, analyzing a set of potential drivers for possible correlations with DR success.
This preliminary analysis using publicly available data found connections of varying strength between DR adoption and retail electricity prices, power market structure, demand-side policies or regulations, generation mix, and capacity reserve margin.
Factors that did not show correlations, but could upon further study, included weather, frequent outages, growth in load and population, DR incentives, and customer attributes. Factors that could drive more DR in the future include expansion of the DR market, climate policy, renewable energy policy, wholesale energy markets, plug-in electric vehicles, and smart metering.
Learn more in the Issue Brief: Demand Response Drivers available above this article