New market drivers are expected to complement both residential demand response and residential virtual power plant growth
BOULDER, Colo.--(BUSINESS WIRE)--#DER--A new report from Guidehouse Insights analyzes the global market for residential flexibility solutions such as demand response (DR) and virtual power plant (VPP) applications. The report provides global market forecasts through 2030 for DR and VPP capacity, implementation spending, and revenue.
Traditional residential DR programs are maturing, while the growing penetration of distributed energy resources (DER), including battery storage, rooftop photovoltaic (PV) inverters, and electric vehicles, are creating new opportunities for residential customers in the VPP space. According to a new report from Guidehouse Insights, the role of flexible capacity in a growing number of markets is forecasted to grow from less than $1 billion in 2021 to more than $6.5 billion by 2030, at a compounded annual growth rate (CAGR) of 23.3%.
“Extreme weather phenomena are just one factor fueling the growth of residential automated flexible capacity in response to price signals and more traditional behavioral or load control-based residential DR,” says Peter Asmus, research director with Guidehouse Insights. “As grid operators develop a more urgent need to procure flexible capacity, we anticipate that the engagement of the aggregated residential capacity segment will become competitive with commercial and industrial customers.”
Customer engagement trends, an evolving market ecosystem, and supportive regulatory environment drive VPP growth. Additional drivers, such as residential sector programming during COVID-19, load disaggregation for targeted marketing, pre-enrollment through utility marketplaces, and time-varying pricing adoption complement these original drivers for increased flexibility options.
The report, Market Data: Residential Demand Response and Virtual Power Plant Markets, analyzes the global market for residential DR and VPP applications. The study provides an analysis of the market issues, including market drivers and barriers. Global market forecasts for capacity, implementation spending, revenue, and DR sites are broken out by region and extend through 2030. An executive summary of the report is available for free download on the Guidehouse Insights website.
About Guidehouse Insights
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today’s rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.
Guidehouse is a leading global provider of consulting services to the public and commercial markets with broad capabilities in management, technology, and risk consulting. We help clients address their toughest challenges and navigate significant regulatory pressures with a focus on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that prepare our clients for future growth and success. The company has more than 8,000 professionals in over 50 locations globally. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit: www.guidehouse.com.
* The information contained in this press release concerning the report, Market Data: Residential Demand Response and Virtual Power Plant Markets, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.