4Q 2023

Analyst Insight: Demand Response and Energy Efficiency Update

Global DER Deployment Insights

As economies around the world look to cut emissions from the power sector by installing more renewable energy capacity, that flexibility must come from additional sources. Demand response (DR) is seen as a promising tool to match consumers’ electricity demand with available supply, but its adoption is still a long way from reaching this potential. Still, the increased proliferation of distributed energy resources (DER) being installed on customer property is spurring energy efficiency (EE) installations and leading solution providers to offer more integrated, comprehensive, and bundled energy solutions to customers through innovative business models.

The Global DER Deployment Database 3Q23 covers 14 DER technologies grouped into four distinct parts of the value chain that generate, manage, and consume electricity. Despite their distinct characteristics, these technologies usually operate behind the meter at customer facilities. In some cases, the technologies are owned and operated by actors outside traditional utilities, such as the technology owner or third-party service providers and aggregators.

This Analyst Insight focuses on demand response (DR) and energy efficiency (EE) capacity and revenue forecasts for world markets. It also considers some of the updated forecasts in the Global DER Deployment Database 3Q23, different DR applications, a focus on the UK market, and key recommendations for consumers, utilities, and governments.

Pages 13
Tables | Charts | Figures 6
  • How are DR/EE capacity and revenues forecast to grow in the next 10 years?
  • Which markets will dominate in the coming years?
  • What are the key drivers and barriers for DR and EE?
  • How do these technologies break down at the application level?
  • How can we further deployment of these valuable grid resources?
  • Energy suppliers, utilities, and grid operators 
  • Government agencies
  • Investor community



Executive Summary

Market Drivers and Barriers

Market Forecast: Demand Response

Market Forecast: Energy Efficiency

Demand Response Application Types

UK Demand Response Trials

Recommendations and Acronyms

Additional Resources and Contact

  • Cumulative DR Capacity by Region, World Markets: 2023-2032
  • Cumulative DR Revenue by Region, World Markets: 2023-2032
  • Annual EE Capacity Additions by Region, World Markets: 2023-2032
  • DR Capacity by Application, UK: 2023
  • Annual DR Revenue by Application, UK: 2023-2032
  • Market Drivers and Barriers
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