- Where are residential DR programs growing?
- What is driving innovation in the residential flexibility space?
- What DER are playing a larger role in the provision of residential flexibility?
- How do residential needs differ from the C&I sector?
- What challenges do residential customers face when enrolling in flexibility programs?
- How are VPPs growing relative to traditional DR?
- What types of VPPs are expected to best engage the residential customer of the future?
2Q 2021
Market Data: Residential Demand Response and Virtual Power Plant Markets
Residential Demand Response and Virtual Power Plant Capacity, Implementation Spending, Revenue, and Sites: Global Market Forecasts and Analysis
Traditional residential demand response (DR) programs are maturing, and the growing penetration of distributed energy resources (DER) including battery storage, rooftop PV, and EVs are creating new opportunities for residential customers in the virtual power plant (VPP) space. DR-VPPs were developed in North America and can engage the residential segment with relative ease, while supply-side VPPs originated and evolved in Europe and focus primarily on the commercial and industrial (C&I) sector. Both VPP platforms provide benefits and are driving the evolution of flexibility aggregation from siloed aggregation of automated DR load and renewable generation resources toward broader ecosystem orchestration—the mixed-asset VPP model.
The need to engage the residential sector in the provision of flexible capacity came into focus at the start of the COVID-19 pandemic when energy flows shifted away from the C&I segment and toward residential infrastructure. This redistribution of energy demand, coupled with drivers including market maturity, growing penetration of DER, and the adoption of time-varying rates, are all driving the need for residential flexibility. Simultaneously, misaligned incentives in the multifamily sector and regulatory inconsistencies are among the factors inhibiting more rapid use of residential flexible capacity.
This Guidehouse Insights report analyzes the global market for residential DR and VPP applications. The study provides an analysis of the market issues, including market drivers and barriers. Global market forecasts for capacity, implementation spending, revenue, and DR sites are broken out by region and extend through 2030.
Pages
41
Tables | Charts | Figures
30
Key Questions Addressed
Who Needs This Report
- Utilities
- Wholesale market operators
- Energy retailers
- VPP platform providers
- Flexible capacity aggregators
- DR program implementers
- Grid-interactive technology manufacturers
- Utility trade allies
- Public utility commissions
- Investor community
Table Of Contents
1. Executive Summary
1.1 Introduction
1.2 Market Drivers
1.3 Market Barriers
1.4 Market Forecast
2. Market Issues
2.1 Market Definitions
2.2 Market Drivers
2.2.1 Residential Sector Programming During COVID-19
2.2.2 Load Disaggregation for Targeted Marketing
2.2.3 Pre-Enrollment Through Utility Marketplaces
2.2.4 Time-Varying Pricing Adoption
2.3 Market Barriers
2.3.1 Misaligned Incentives for Landlords and Renters
2.3.1.1 Multifamily
2.3.1.2 Low Income
2.3.2 Risks to Customer Satisfaction from Load Disaggregation
2.3.3 Regulatory Inconsistencies
2.4 Regional Overview
2.4.1 North America
2.4.2 Europe
2.4.3 Asia Pacific
2.4.4 Rest of the World
3. Market Forecasts
3.1 Forecast Introduction
3.2 Assumptions Guiding this Forecast
3.2.1 Note on Report Scope and Market Sizing
3.3 Residential DR
3.4 Residential DR-VPPs
3.5 Residential Supply-Side VPPs
3.6 Residential Mixed-Asset VPPs
4. Conclusions and Recommendations
5. Acronym and Abbreviation List
6. Table of Contents
7. Table of Charts and Figures
8. Scope of Study, Sources and Methodology, Notes
List of Charts and Figures
- Residential Flexible Capacity and Total Revenue by Technology, World Markets: 2021-2030
- Residential DR Capacity by Region, World Markets: 2021-2030
- Residential DR Implementation Spending by Region, World Markets: 2021-2030
- Residential DR Revenue by Region, World Markets: 2021-2030
- Residential DR Sites by Region, World Markets: 2021-2030
- Residential DR-VPP Capacity by Region, World Markets: 2021-2030
- Residential DR-VPP Implementation Spending by Region, World Markets: 2021-2030
- Residential DR-VPP Revenue by Region, World Markets: 2021-2030
- Residential Supply-Side VPP Capacity by Region, World Markets: 2021-2030
- Residential Supply-Side VPP Implementation Spending by Region, World Markets: 2021-2030
- Residential Supply-Side VPP Revenue by Region, World Markets: 2021-2030
- Residential Mixed-Asset VPP Capacity by Region, World Markets: 2021-2030
- Residential Mixed-Asset VPP Implementation Spending by Region, World Markets: 2021-2030
- Residential Mixed-Asset VPP Revenue by Region, World Markets: 2021-2030
- Flexible Terminology Schematic
List of Tables
- Residential DR Capacity by Region, World Markets: 2021-2030
- Residential DR Implementation Spending by Region, World Markets: 2021-2030
- Residential DR Revenue by Region, World Markets: 2021-2030
- Residential DR Sites by Region, World Markets: 2021-2030
- Residential DR VPP Capacity by Region, World Markets: 2021-2030
- Residential DR VPP Implementation Spending by Region, World Markets: 2021-2030
- Residential DR VPP Revenue by Region, World Markets: 2021-2030
- Residential Supply-Side VPP Capacity by Region, World Markets: 2021-2030
- Residential Supply-Side VPP Implementation Spending by Region, World Markets: 2021-2030
- Residential Supply-Side VPP Revenue by Region, World Markets: 2021-2030
- Residential Mixed-Asset VPP Capacity by Region, World Markets: 2021-2030
- Residential Mixed-Asset VPP Implementation Spending by Region, World Markets: 2021-2030
- Residential Mixed-Asset VPP Revenue by Region, World Markets: 2021-2030
- Total Residential Flexibility Capacity by Segment, World Markets: 2021-2030
- Assumptions Underlying Residential DR and VPP Market Forecasts