MORE FACTORIES MOVING TO DEMAND RESPONSE

Demand Response for Industrial Markets Industrial Peak Load Curtailment and Payments: Global Market Analysis and Forecasts

1Q 2013 (Pike Research/Navigant)

“Since the inception of demand response (DR) in the mid-1970s…the [U.S.] industrial sector…[has been] an important target market…[With] DR is increasingly adopted in other parts of the world, [those] industrial facilities will also become a critical customer segment…

“…[T]he industrial sector offers unique opportunities because it is able to contribute unusually large amounts of load reduction – even from just one plant. As a result, large industrial or manufacturing sites have been considered the low-hanging fruit by DR providers.”

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“…[There is no DR participation for industrial customers but] it is reasonable to assume that their overall contribution of load curtailment is proportionately much larger than the commercial customer segment…[Their participation] to a great extent depends on the flexibility of the production process…

“Pike Research forecasts that industrial peak load reduction will grow from 26.8 gigawatts (GW) in 2013 to reach 62 GW by 2019. The North American region, mainly the United States, represents the lion’s share of industrial peak reduction throughout the forecast period…”

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