According to the 2018 global demand response forecast, the global power demand response capacity will more than triple to 177gw by 2030. China will become the market leader, and new opportunities will appear in the world.
Demand response is mainly used to reduce peak load and support the large-scale growth of renewable energy installation.
The growth of demand response is moderate in the short term, but it will expand in the early 2020’s with the acceleration of the growth of renewable energy installed capacity. In most countries, demand response will be a vital resource for flexibility to put more renewable energy into operation.
Demand response increases the market share of power auxiliary services, but due to its limited scale, it is not the main growth source of auxiliary services. Globally, standby and FM services accounted for only 11% of demand response capacity in 2030, lower than the current 22%.
In this forecast, two countries dominate the capacity of demand response: by 2030, China and the United States will account for 59% of the global capacity. These two giants overshadow opportunities elsewhere, especially where demand response has not yet gained a firm foothold. Brazil, the United Kingdom and Italy are the second echelon, which each deployed an additional 3gw of demand response capacity between 2018 and 2030.
Demand response has increased from 0.5% of global power system capacity to nearly 2%. In mature markets, such as France and the United States, the penetration rate is close to 4%, indicating that there is still significant room for growth in demand response elsewhere.