Thanks to smart-grid technology, residential DR (demand response) programs are spreading.

A report from Navigant Research,, analyzes the global market for residential DR in five major geographic regions, which includes global market forecasts for residential DR sites, capacity, and revenue through 2023.

The development of smart-grid technology, especially AMI (advanced metering infrastructure) and smart, two-way communicating thermostats, is allowing utilities in numerous countries to deliver DR response programs. These systems enable utilities to discretely dispatch customers according to the load on the grid, and customers to control their own devices via mobile applications, which allow them more control over their energy usage and spending. The report says worldwide revenue from residential DR is expected to grow from $332 million in 2014 to $2.3 billion in 2023.

“Advanced two-way thermostats are changing the business model for utility residential DR programs,” says Brett Feldman, senior research analyst, Navigant Research. “The so-called ‘bring your own thermostat’ model, in which consumers purchase thermostats at retail stores, can vastly reduce the acquisition costs for programs and lead to greater customer satisfaction, since they are the parties choosing their own devices and initiating the participation process.”

Additionally, residential DR will be an integral part of the development of a more resilient grid and the spread of microgrids, trends which have increased in urgency following recent extreme weather events. With the emergence of grid modernization closely tied to new approaches to designing the grid, residential plug-in electric vehicles are being viewed as DR assets, and almost every domestic auto manufacturer has launched some sort of energy-use optimization pilot.

The report delivers an analysis of market drivers and barriers, along with global players and dynamics, associated with residential DR. In addition, the report examines the main technologies related to residential DR and identifies the strengths and challenges of key industry players.

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