Navigant Report Suggest DR Boom


According to a recent report by Navigant Research, the research arm of Navigant (NCI), the commercial sector is set to become one of the major markets for demand response (:DR). According to the report, the underserved commercial buildings market is likely to generate revenues worth $712.5 million for DR initiatives by 2018.

DR is a demand mechanism tool through which customers’ demand for electricity consumption is managed in accordance with the supply conditions. Customers usually change their normal pattern of electricity consumption in conjunction with changes in price of electricity over time, which in turn helps reduce the peak demand for electricity.

The commercial sector is one of the most promising sectors for growth for DR market. The survey suggests that apart from large businesses and institutions, the untapped segment of the commercial sector, viz. the small and the medium-sized commercial business and institutional customers can offer huge potential for growth. The energy usage by commercial buildings escalates during peak hours, especially in during severe conditions. Utilities, grid operators, curtailment service providers are now tapping these sectors to curtail load during peak hours.

Use of smart meters and advance metering infrastructure are also contributing to the booming DR market. These meters will help businesses and institutions to participate in an economic DR market and take advantage of dynamic pricing methodology to avail reduced tariff rates.
Navigant carries a Zacks Rank #2 (Buy). Some other companies that have launched advanced softwares to support DR program through Demand Response Management System (:DRMS) are Siemens Aktiengesellschaft (SI), General Electric Company (GE) and Ventyx, a subsidiary of ABB Ltd. (ABB).

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