Demand response — The maturity cycle

Demand Response (DR) is a proven alternative to additional generation or network capacity. It is an effective tool for improving “load factor” and penetration of renewables. The market for DR is poised for exponential growth. Utilities of all sizes across the globe with multiple DR programs in place are growing their portfolios. Many are not implementing their first, but perhaps their eighth or tenth DR program. Where push for DR has just started, such as in India, utilities are implementing proof-of-concept pilots to test the economies of scale and provide inputs for a robust DR regulatory framework. DR is an integral part of four of the eight key domains of a utility´s Smart-Grid-Maturity-Model. Choosing the right DR technology and programs is a quest for a balance of cost effectiveness, minimizing impact to customer, and to system operations. This paper looks at a four-point DR Maturity Cycle on where and how utilities start, then scale up and learn before pioneering best-in-class DR programs.