Navigant Consulting, Inc. (NCI)

Asia Represents the Next Frontier for Demand Response Programs


Source: Navigant Consulting, Inc. (NCI)

The United States remains at the epicenter of demand response (DR) activity worldwide. Presently, there are only a few dozen DR programs outside of the U.S., in countries such as Canada, the United Kingdom, France, Italy, Ireland, Australia, New Zealand, South Korea, Japan, and Saudi Arabia. Click to tweet: According to a new tracker report from Navigant Research, however, demand response is poised for significant growth in the countries of Asia Pacific, including China, Singapore, India, and Malaysia.

“With energy demand in the region expected to increase 2.1 percent per year through 2035, governments in Asia Pacific have strong reasons to encourage the adoption of DR,” says Eric Woods, research director with Navigant Research. “The largest countries in the region, including China and Japan, are already taking active steps to introduce DR programs. Moreover, South Korea is looking to expand its existing DR offerings, while India, Singapore, and Malaysia are running demonstration projects to test various DR strategies.”

The report identifies 1,364 programs from around the world, almost 95 percent of which are offered in North America. At the same time, a large number of DR pilots are underway across Europe, and are expected to be completed in 2014. Many of these demonstration projects are part of smart city initiatives in countries such as the United Kingdom (Low Carbon London), the Netherlands, Sweden, Denmark, and Finland. According the report, many of these projects have a strong focus on energy efficiency, which reflects the impact of the energy and climate change regulations by the EU and national governments.

The report, “Demand Response Tracker 4Q13”, tracks DR programs that fall into three market models that each addresses different objectives: capacity, economic, and ancillary services. It provides data on different types of DR programs, such as direct load control, interruptible load, load as a capacity resource, time-of-use, dynamic pricing, and demand bidding. It also covers programs focused on the major customer segments, including commercial, industrial, agricultural, and residential, while taking into account the amount of load curtailment and the number of program participants reported by energy providers. An Executive Summary of the report is available for free download on the Navigant Research website.

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