The number of digitally connected energy-related devices has been growing exponentially. As more systems digitalise and more connected devices are deployed, opportunities to increase consumer participation in energy systems are expanding, including through demand response, electric vehicle charging and behind-the-meter generation and storage.
In addition, tapping into further flexibility through numerous small-scale devices ('deep' demand-side flexibility) can increase the overall capacity of the system to host variable renewables while accelerating the electrification of heating, cooling, transport and industry at lower costs.
Last updated Nov 28, 2019
Demand response potential in the Sustainable Development Scenario, 2016-2040
Enthusiasm for smart-meter deployment has not resulted in market designs and business models necessary to take advantage of the potential flexibility available
Demand-response capacity increased only 4% in 2018, maintaining the average growth rate of the past five years despite vast demand-response potential (equivalent to total annual US electricity demand). Although progress has been made in smart-meter deployment, this enthusiasm has not spread to developing the market designs and business models necessary to take advantage of the potential flexibility available. To raise demand-response growth closer to the SDS level, new markets for flexibility and ancillary services are needed, and existing markets need to be opened to new business models such as aggregation and virtual power plants.