BOULDER, CO—A new report from Navigant Research examines the global demand response (DR) market with a focus on two key sectors: commercial/industrial and residential.

Efforts to limit power generation by utilities and reduce peak loads on the grid, along with the changing resource mix in electric grids globally, are creating new demand for DR programs. While the United States is leading the way in the DR market, utilities worldwide are finding new ways to incentivize more active customer participation in DR programs. According to a recent report from Navigant Research, the total worldwide capacity of demand response programs is expected to grow from 30.8 gigawatts (GW) in 2014 to more than 196.6 GW by 2023.

“Technology advances in metering, controls, and end-use devices are making it easier for customers to participate in DR programs and to manage their energy usage,” says Brett Feldman, senior research analyst with Navigant Research. “At the same time, the retirement of large numbers of coal and nuclear plants, and the expansion of large-scale intermittent renewable resources like wind and solar power to fill this gap, are creating more need for backup solutions when the wind is not blowing and the sun is not shining. Demand response fills that need in an efficient and cost-effective way.”