Commercial, Demand Management, Industrial  -  March 9, 2018

C&I demand response to total $2.9 billion in 2027

The global market for commercial and industrial demand response is expected to grow from $1.9 billion in 2018 to $2.9 billion in 2027, according to Market Data: Demand Response for C&I, a new report from Navigant Research.

According to a statement from the company, C&I facilities represent an important target for utilities and demand response aggregators. Navigant noted that while industrial facilities contribute significantly large amounts of load reduction, small and medium commercial customers can have a collective impact, especially as the large commercial market becomes saturated.

"While traditional forms of demand response continue to be deployed today, newer forms are emerging and are being integrated with other distributed energy resources (DER), such as energy storage and electric vehicles," said Brett Feldman, principal research analyst with Navigant Research. "Additionally, as renewable energy adoption continues to increase, demand response provides a key benefit in its ability to help integrate renewable resources by taking advantage of low cost, off-peak energy when wind and solar are abundant."

Navigant advises that in order to enhance C&I demand response competitiveness and customer acceptance, utilities and service providers should focus on key differentiators of markets and program opportunities, stacking the values as they open up to demand response. The statement also noted that "it’s also important to not look at DR as in a bubble, but to consider it within the context of other DER offerings, including storage, distributed generation, and energy efficiency, to provide the greatest value proposition for customers."

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