The current economic environment and improving technologies are among the influences that will lead to $1.3 billion in spending on demand response (DR) solutions worldwide by 2024, according to Navigant Research. That compares to $183.8 million in 2015, Navigant says in a new report.
The report says automated demand response (ADR) technologies that improve communications throughout the dispatch process will be the most important development leading to growth. “Advances in metering, communications, and control technologies are making ADR a viable alternative in both the commercial and industrial and the residential sectors,” said Brett Feldman, Navigant senior research analyst, in a press release.
However, the current regulatory direction could slow the projected growth rate, Navigant said. It pointed to the recent announcement by the U.S. Supreme Court to rule on a 2011 Federal Energy Regulatory Commission (FERC) order setting rules utilities’ DR programs. The order’s opponents say that FERC exceeded its authority to regulate wholesale energy rates. The Supreme Court will review a May 2014 decision by the U.S. Court of Appeals for the District of Columbia Circuit that vacated the FERC rule.
If the court does not reverse the appeals court ruling, “it could cause a huge disruption in the DR industry,” Navigant said.
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