Market drivers include corporate sustainability goals, increased renewable energy capacity on grids, development of open energy markets and new DER regulations.
BOULDER, Colo., 13 December 2022 /PRNewswire/ — Commercial and industrial (C&I) demand response (DR) and virtual power plant (VPP) capacity continues to increase as more customers install distributed energy resources (DER) onsite and electricity end-uses to lower their utility bills and reduce emissions. from their operations. A new report from Guidehouse Insights offers a global analysis of the CIDR and DER flexibility markets through 2031.
According to the report, overall reasonable DER capacity, revenue and implementation costs in the C&I sectors are expected to experience moderate growth during the outlook period. By the end of 2022, Guidehouse Insights projects nearly 78 GW of total flexible C&I DER capacity. This is expected to reach 268.4 GW by 2031 at a compound annual growth rate (CAGR) of 14.7%.
“Flexible markets, whether at the distribution level or at the transmission level, allow utilities and network operators to obtain reasonable available capacity from DER, to compensate customers, when necessary, to reduce network congestion, ” he says. Dan Power, research analyst with Guidehouse Insights. “Development of C&I DER through flexibility markets can improve grid stability by involving a small number of entities.”
Helping to increase flexible C&I DER capacity are corporate sustainability goals and a desire for increased reliability and resilience in the wake of ever-increasing natural disasters. According to the report, increased renewable energy capacity and constraints on aging grid infrastructure are driving the need for flexibility on power grids, while new energy market regulations allow non-commercial resources to be compensated to provide flexibility.
report, Commercial and Industrial Demand Response and Flexibility Markets, examines the flexible C&I DER market, including DRs and VPPs that can be provided on flexibility markets. Regional level analysis for capacity, deployment costs, and revenue is presented in five major geographic regions from 2022-2031 with capacity analysis broken down by technology type. While total flexible C&I DER capacity is expected to be the largest in europeis expected to grow among the fastest Latin America and the middle east & Africa. An executive summary of the report is available for free download on the Guidehouse Insights website.
About Guidehouse Insights
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data and measurement services for today’s fast-changing and highly regulated industries. Our insights are based on in-depth analysis of global cleantech markets. The team’s research methodology combines industry analysis, primary end-user research, and demand assessment, with an in-depth analysis of technology trends, to provide a comprehensive overview of innovative resilient infrastructure systems. More information about Guidehouse Insights can be found at www.guidehouseinsights.com.
Guidehouse is a leading global provider of advisory services to the public sector and commercial markets, with extensive capabilities in management, technology and risk consulting. By combining public and private sector expertise, we help clients solve their most complex problems and manage significant regulatory pressures that focus on transformative change, business resilience, and technology innovation. Through a range of consulting, advisory, outsourcing and digital services, we create innovative, innovative solutions that help our clients overcome disruption and position them for future growth and success. The company has more than 16,500 professionals in more than 55 locations worldwide. Guidehouse is a portfolio company of Veritas Capital, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues that drive national and global economies. For more information, please visit www.guidehouse.com.
*Information contained in this press release about the report, Commercial and Industrial Demand Response and Flexibility Markets, is a summary and reflects current expectations of Guidehouse Insights based on market data and trend analysis. Market forecasts and market expectations are inherently uncertain and actual results may differ materially from those contained in this press release or report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s findings and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes to update any of the information contained in this press release or report.
For more information, contact:
Cecile Fradkin for Guidehouse Insights
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SOURCE Guidehouse Insights