Increased smart energy adoption to drive global demand response market growth 3 MARCH 2016

smart grid

Whilst US utilities are leading in implementation of demand response programmes, Europe and Asia are emerging as hot markets for smart meters and thermostats.

This is according to a new report on the global market for demand response, released by energy market research company, Frost and Sullivan this week.

In a press statement, Frost and Sullivan said the report also studies the components of load reduction and load shifting.

Pritil Gunjan, Frost & Sullivan Senior Industry Analyst said: “The higher investments in innovative technology will aid the smoother roll out of DR programs. Customer interfaces and automated technologies will enable a transparent and secure DR implementation.”

Renewable energy integration

Customer interfaces and automated technologies will enable transparent and secure DR implementation

The report predicts the increase in DR adoption will be due to increased calls by governments towards the increased integration of renewable energy sources onto utilities’ grids.

To date, the UK, China, Japan and South Korea are recognising the value of DR as a way to achieve their carbon emission reduction goals, while at the same time assuring clean and reliable power generation during peak times, states the report.

Gunjan added: “Extreme weather variations, declining energy reserves and the introduction of numerous distributed generation technologies have made it vital for utilities to seek newer models supporting energy efficiency and energy management initiatives.”

Regulatory impacts

Furthermore, the report states that regional regulations and policies will also further utilities interest in deploying DR programs through facilitation of regional coordination and integration efforts.

Frost & Sullivan predicts that utilities will actively address regulatory and market challenges to allow optimal implementation of the aggregator-utility model as aggregators will play an important role across the DR value chain by managing energy system integrations.

Demand response in the US

In line with the report’s predictions, utilities in the US continue to rally towards implementing demand response programs.

Last month, East Kentucky Power Cooperative (EKPC) awarded smart grid company, Open Access Technology International, a demand response management deal.

Under the terms of the agreement, OATI will provide EKPC with phase two of its WebDistribute demand response management system (DRMS).

The solution will allow EKPC to centrally assess member utilities’ deployed demand response resources, and dispatch all the load control assets.

EKPC’s 16 member utilities operating in Kentucky counties have a total customer base of 520,000 residential, commercial and industrial consumers.

OATI claims the solution will modernise EKPC’s process of managing, dispatching, measuring, and verifying utilities’ load management programs in full compliance with PJM’s Market structure and Emergency Operations Plans.

OATI wrote: The development will enable “EKPC to maximize the economic value of these important assets for their member cooperatives.”

The deal followed successful implementation of phase 1 of the demand response management project in mid-2015.

Phase two kick-started with integration of the OATI webDistribute solution with different advanced metering infrastructure systems deployed by EKPC utilities.

WebDistribute was integrated with Landys & Gyr, Aclara, Tantalus, and Eaton Cannon Cooper’s AMI solutions.