PUBLISHER: Guidehouse Insights | PRODUCT CODE: 1158458
PUBLISHER: Guidehouse Insights | PRODUCT CODE: 1158458
Commercial and industrial (C&I) demand response (DR) and virtual power plant (VPP) capacity is increasing as more customers install distributed energy resources (DER) on site and electrify end uses to lower their utility bills and reduce emissions from their operations. At the same time, utilities and grid operators are looking to transition away from fossil fuel generation sources. The convergence of these trends presents an opportunity for flexible C&I DER capacity to serve customer needs and provide essential grid services through flexibility markets.
Helping drive an increase in flexible C&I DER capacity are corporate sustainability targets and a desire for enhanced reliability and resilience in the wake of increasingly frequent natural disasters. Increased renewable energy capacity and constraints on aging grid infrastructure are driving a need for flexibility on power grids, while new energy market regulations are enabling non-utility resources to be compensated for providing flexibility. Limited utility visibility into behind-the-meter resource operation and issues with customer engagement and education remain some of the barriers to more widespread adoption of flexible C&I DER.
This Guidehouse Insights report examines the flexible C&I DER market, including DR and VPPs, that could be made available on flexibility markets. Regional level forecasts for capacity, implementation spending, and revenue are presented across five major geographic regions from 2022-2031 with capacity forecasts segmented by technology type. While total flexible C&I DER capacity is forecast to be the largest in Europe, it is projected to grow most quickly in Latin America and the Middle East & Africa.
Service Provider Share of Market Revenue
DER Management Software Platform Pricing Information
"Cumulative Flexible C&I DER Capacity, Implementation Spending, and Revenue, World Markets: 2022-2031"
"Cumulative Flexible C&I DER Capacity and Implementation Spending, Asia Pacific: 2022-2031"
Cash Flows in a DER Aggregation-Enabled Market