Market drivers include advances in energy hardware and
software that grid operators can leverage for DER
flexibility
BOULDER, Colo.,
July 18,
2024 /PRNewswire/ -- A new report from
Guidehouse Insights examines the global market for flexibility
from aggregated distributed energy resources (DER).
Power grid flexibility has historically come from dispatchable
fossil fuel power plants, but world economies in pursuit of climate
goals require alternative technologies and methods to reduce
emissions from power generation. According to a new report from
Guidehouse Insights, nearly 161 GW of total flexible DER capacity
is expected to be online worldwide by the end of 2024. By 2033,
this amount is projected to grow by an average compound annual
growth rate (CAGR) of 5.2% to more than 253 GW.
"While customers continuing to adopt DER across all business
segments might strain the grid—it brings an opportunity to grid
operators," says Roberto Rodriguez
Labastida, principal research analyst with Guidehouse
Insights. "When properly managed, controlled, and optimized, these
resources can provide essential grid services with fewer emissions,
and, often, at a lower price than conventional grid resources and
traditional grid infrastructure."
Advances in energy hardware and software are market drivers that
grid operators can leverage for DER flexibility. Among the barriers
to more widespread adoption are antiquated wholesale electricity
market regulations and utility revenue structures, along with a
lack of customer outreach and education. The regulatory landscape
where a grid is located heavily influences a grid operator's
ability to use the various methods of achieving flexibility from
DER, directly through the wholesale electricity markets, local
flexibility markets, or distribution level programs, according to
the report.
The report, Distributed Energy Resource Flexibility,
examines the flexible DER market including retail and wholesale
virtual power plants (VPPs) and traditional demand response (DR)
programs. Regional level analyses for capacity, implementation
spending, and revenue are presented across five major geographic
regions for the period of 2024-2033. Capacity analyses are
segmented by technology type (VPP and DR) and customer segment
(residential and commercial & industrial) while revenue
analyses are segmented by DER owner and the flexibility service
provider. An executive summary of the report is available for free
download on the Guidehouse Insights website.
About Guidehouse Insights
Guidehouse Insights, the
dedicated market intelligence arm of Guidehouse, provides research,
data, and benchmarking services for today's rapidly changing and
highly regulated industries. Our insights are built on in-depth
analysis of global clean technology markets. The team's research
methodology combines supply-side industry analysis, end-user
primary research, and demand assessment, paired with a deep
examination of technology trends, to provide a comprehensive view
of emerging resilient infrastructure systems. Additional
information about Guidehouse Insights can be found at
www.guidehouseinsights.com.
About Guidehouse
Guidehouse is a leading global
provider of consulting services to the public sector and commercial
markets, with broad capabilities in management, technology, and
risk consulting. By combining our public and private sector
expertise, we help clients address their most complex challenges
and navigate significant regulatory pressures focusing on
transformational change, business resiliency, and technology-driven
innovation. Across a range of advisory, consulting, outsourcing,
and digital services, we create scalable, innovative solutions that
help our clients outwit complexity and position them for future
growth and success. The company has more than 16,000 professionals
in over 55 locations globally. Guidehouse is led by seasoned
professionals with proven and diverse expertise in traditional and
emerging technologies, markets, and agenda-setting issues driving
national and global economies. For more information, please visit
www.guidehouse.com.
* The information contained in this press release concerning
the report, Distributed Energy Resource
Flexibility, is a summary and reflects the current
expectations of Guidehouse Insights based on market data and trend
analysis. Market predictions and expectations are inherently
uncertain and actual results may differ materially from those
contained in this press release or the report. Please refer to the
full report for a complete understanding of the assumptions
underlying the report's conclusions and the methodologies used to
create the report. Neither Guidehouse Insights nor Guidehouse
undertakes any obligation to update any of the information
contained in this press release or the report.
For more information, contact:
Cecile Fradkin for Guidehouse
Insights
+1.646.941.9139
cfradkin@scprgroup.com
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SOURCE Guidehouse Insights