Demand Response Programs Will Reduce Peak Load in the
US by 10% by 2020
Reference Code: GDPE0014VPT Publication Date: AUG 2010
1 Table of Contents 2 GlobalData Market Analysis Alert
1 Table of Contents.................................................................1 2.1 Summary
1.1 List of Tables .................................................................1
2 GlobalData Market Analysis Alert ........................................1 Demand response is an effective tool for reducing overall
2.1 Summary .......................................................................1 energy use and cutting peak load. Demand response programs
3 Demand Response Programs will Reduce Peak Demand in will play a major role in reducing peak electricity demand in the
the US By 10% By 2020 ......................................................1
US by 2020. With such programs in place, peak demand could
3.1 Demand Response Facilitates Peak Load Reduction ...2
3.2 Independent Studies Reinforce the Potential Savings be reduced by about 100 gigawatts (GW), or 10%, by 2020,
from Demand Response ...............................................2 compared to the baseline scenario. This would result in savings
3.3 Benefits of Demand Response will Drive the of over $70 billion over 20 years through avoided energy
Implementation of Demand Response Programs..........4 production, energy distribution and energy generation costs.
3.4 Regulatory and Technological Factors Will Act As Without any demand response programs, peak demandis
Barrier To Demand Response.......................................5 estimated to grow at an annual rate of 1.7%, from about 810
3.5 Recent Initiatives Highlight Renewed Interest In
GW in 2009 to approximately 950 GW by 2019. A smart grid-
Demand Response........................................................5
4 Appendix..............................................................................5 enabled demand response program would provide benefits to
4.1 Methodology..................................................................5 small and individual as well as large consumers, unlike
4.1.1 Coverage..............................................................5 traditional demand response systems that only benefit the
4.1.2 Secondary Research............................................6 latter. Independent studies by federal agencies have affirmed
4.1.3 Primary Research ................................................6 the potential of demand response to reduce peak demand.
4.1.4 Expert Panel Validation ........................................6 Demand response has traditionally been restricted to large,
4.2 Contact Us ....................................................................6
industrial consumers of electricity in the legacy grid, while
4.3 Disclaimer .....................................................................6
residential and other small consumers were left out. However,
the large scale penetration of Advanced Metering Infrastructure
(AMI) and smart meters will allow utilities to exploit the potential
1.1 List of Tables of small consumers to improve energy efficiency through
Table 1: Summary Of Demand Response Program ...............2 demand response.
Table 2: Estimated Demand Response Potential For Different
Scenarios .................................................................3 3 Demand Response Programs will
Table 3: Potential For US Summer Peak Demand Savings Reduce Peak Demand in the US By
(GW).........................................................................4
Table 4: Potential For US Summer Peak Demand Savings 10% By 2020
(%)............................................................................4 Demand response is one of the key advantages of a smart grid.
In addition to an increase in overall efficiency and peak load
reduction, there are many other benefits of a smart grid-enabled
demand response system. Demand response in traditional grids
focuses only on a few specific end users who consume large
amounts of energy, and the primary control of power distribution
rests with the utilities. Demand response enabled by a smart
grid will give more control to all end users, rather than just the
few largest ones.
Independent studies have estimated the potential of peak
demand reduction through demand response programs in the
US. In the absence of demand response, the peak demand is
forecast to grow at an annual aver