Guidehouse Insights New Report - Market Data: Residential Demand Response and Virtual Power Plant Markets

Traditional residential demand response (DR) programs are maturing, and the growing penetration of distributed energy resources (DER) including battery storage, rooftop PV, and EVs are creating new opportunities for residential customers in the virtual power plant (VPP) space. DR-VPPs were developed in North America and can engage the residential segment with relative ease, while supply-side VPPs originated and evolved in Europe and focus primarily on the commercial and industrial (C&I) sector. Both VPP platforms provide benefits and are driving the evolution of flexibility aggregation from siloed aggregation of automated DR load and renewable generation resources toward broader ecosystem orchestration—the mixed-asset VPP model.

The need to engage the residential sector in the provision of flexible capacity came into focus at the start of the COVID-19 pandemic when energy flows shifted away from the C&I segment and toward residential infrastructure. This redistribution of energy demand, coupled with drivers including market maturity, growing penetration of DER, and the adoption of time-varying rates, are all driving the need for residential flexibility. Simultaneously, misaligned incentives in the multifamily sector and regulatory inconsistencies are among the factors inhibiting more rapid use of residential flexible capacity.

This Guidehouse Insights report analyzes the global market for residential DR and VPP applications. The study provides an analysis of the market issues, including market drivers and barriers. Global market forecasts for capacity, implementation spending, revenue, and DR sites are broken out by region and extend through 2030.

CLICK HERE to read more or purchase the report.

PLMA Members receive a 10% discount on this report. If you are interested in purchasing and are a PLMA member, contact Brett Feldman at [email protected].