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A new report from Navigant Research examines the global market for commercial and industrial demand response (CIDR), providing market forecasts for capacity, sites, spending, and revenue, segmented by region, through 2027.
Commercial and industrial facilities represent an important target for utilities and demand response aggregators. While industrial facilities contribute significantly large amounts of load reduction, collective efforts from small and medium commercial customers are also capable of big impacts, especially as the large commercial market becomes saturated. According to a new report from @NavigantRSRCH, global annual revenue for CIDR is expected to grow from $1.9 billion in 2018 to $2.9 billion in 2027.
“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,” says 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.”
In order to enhance CIDR 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. According to the report, 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.