Revenue for demand response for renewables’ integration to reach $1.3B in 2026, says Navigant

A new report from Navigant Research examines the global market for demand response for renewables’ integration (DRRI), providing an analysis of market issues and forecasts for capacity and revenue, broken out by segment and region, through 2026.

navigant report coverMaintaining the electricity grid’s balance of supply and demand is essential to preserve system reliability. DRRI solutions can help maintain system balance by increasing or decreasing customer loads based on renewables output, while also supplying flexible capacity resources to meet specific renewable balancing needs, like ancillary services.

“Increasing penetration of intermittent renewable generation on the grid raises the risk of supply-demand imbalance, so grid operators will increasingly turn to DRRI as one resource to maintain system balance,” says Brett Feldman, principal research analyst with Navigant Research. “Based on advancements in demand response technology and utility willingness to try new means of renewable balancing, DRRI is set to become a bigger piece of the flexibility investment picture.”

According to the report, several factors point to an increasing focus on DRRI that addresses both the direct and indirect effects of renewables on the grid and end-use customers. These include an increasing share of renewable energy resources in the energy supply mix, demand response’s ability to serve as an ancillary service, and its ability to leverage dynamic pricing, which addresses the impacts of intermittent renewables through indirect financial incentives to customers.

The reportDemand Response for Renewables Integration, examines the global DRRI market, focusing on both C&I and residential market participants. The study provides an analysis of the market issues, including drivers and barriers, associated with DRRI solutions. Global market forecasts for capacity and revenue, broken out by segment and region, extend through 2026. The report also examines the key global trends related to DRRI solutions and provides case studies of DR programs or markets that can help address renewables integration. An Executive Summary of the report is available for free download on the Navigant Research website.

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