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Growth Opportunities in the Asia-Pacific Demand Response Market, Forecast to 2025

  • Report

  • 58 Pages
  • July 2018
  • Region: Asia Pacific
  • Frost & Sullivan
  • ID: 4591124

Actual Accumulated Demand Response Resources to Cross 30GW by 2025

The Asia-Pacific demand response market is in the growing stage with countries such as South Korea, Japan, and New Zealand in the forefront. The liberalization of electricity markets and increasing distributed energy resources have a major role in driving the growth of demand response. However, lack of standardized procedures and absence of incentives deter the market growth in most countries in the region. Australia and Singapore are other notable countries that are aiming to establish an effective DR system in the electricity markets. Countries such as Japan, Australia, and Singapore are still testing the impacts and feasibility of demand response.

However, after 2020, the market is expected to grow strongly with the introduction of demand response for ancillary services in the power sector. Liberalization of the electricity sector is a major drive for demand response market in the region. Besides, aggregation of distributed resources, energy storage system installations are offering opportunities for demands response. Most countries in the region are testing trialing demand response to understand the economic benefits of it to evaluate the necessary incentives to be proposed to promote customer participation. Demand response requires interoperability of DRMS, connected appliances or equipment, network operation center, and so on.

This requires these components to be standardized to ensure effective communication between them. Lack of standardization hinders proper adoption of the technology and deters demand response growth. Key Asia-Pacific markets include South Korea, Japan, Australia, and Singapore. South Korea is leading the path with 3.88 GW in 2017. Emergency demand response constitutes the majority (approximately 70%) of the total demand response market. The Japanese, Australian, and Singaporean markets operate primarily in this model. Implicit DR pricing models can be expected to become popular during the next 5 years. With the integration of more resources under DR aggregation model, cloud-based DR or SaaS model is expected to become popular. This would make the integration of residential resources to the cloud much easier. Besides, DR emerges as a secondary revenue model for energy storage systems, which were installed for power quality improvement, renewable energy fluctuation mitigation, and so on.

Key Issues Addressed:

  • Do current technologies meet the demand response needs or are additional development needed?
  • Which are the key geographical hotspots for demand response market?
  • What trends can be expected in the market during the next 5-8 years?
  • Which are the major companies active in the demand response market?
  • What are the emerging business models in the demand response market?

Table of Contents

1. Executive Dashboard
  • Purpose of this Experiential Study
  • 5 Step Process to Transformational Growth
  • Executive Summary-Key Findings
  • Strategic Imperatives for Suppliers

2. Growth Environment-Market Overview
  • Geographic Scope and Exchange Rates
  • Market Overview-Definition
  • Questions Addressed in the Study
  • Market Overview-Classification of DR
  • Market Overview-Customer Segmentation
  • Market Overview-Energy-efficiency Targets*
  • Market Overview-Factors Leading to DR
  • Market Attractiveness
  • Drivers and Restraints
  • Drivers Explained
  • Restraints Explained

3. Market Forecast
  • Forecast Assumptions
  • Revenue Forecast -Total DR Market
  • Revenue Forecast by Region
  • Revenue Forecast Discussion by Region
  • Competitive Analysis-DR Service Providers
  • Competitive Analysis-DR Software Solution
  • Competitive Analysis-Capability Matrix
  • Business Models-Virtual Power Plant (VPP) Model
  • Business Models-Global Hotspots

4. Visioning Scenarios
  • Macro to Micro Visioning
  • Trends /Factors Impacting the DR Market
  • Top Predictions for the DR Market

5. Growth Pipeline
  • Levers for Growth

6. Vision and Strategy-Growth Opportunities
  • Growth Opportunity 1-Liberalization of Electricity Market
  • Growth Opportunity 2-Intelligent Energy Devices, Data Analytics, and Cloud Platform
  • Growth Opportunity 3-Shrinking Reserve Margin
  • Growth Opportunity 4-Energy Storage Systems and VPP Model
  • Growth Opportunity 5-Vehicle-to-Grid (V2G) Application with DR

7. Growth Opportunities Matrix
  • Identifying Your Company’s Growth Zone
  • Growth Opportunities 1-5-Vision and StrategyRate Relevance vs. Internal Capabilities for Your Company
  • Growth Opportunities MatrixDevelop this Matrix for Your Company

8. Growth Strategy and Implementation
  • Growth Strategies for Your Company
  • Prioritized Opportunities through Implementation
  • Legal Disclaimer

9. Appendix
  • Abbreviations and Acronyms Used
  • Other Companies
  • List of Exhibits

Companies Mentioned

A selection of companies mentioned in this report includes:

  • EnerNOC
  • Comverge
  • EnergyPool
  • Fuji Electric
  • Byuksan Power
  • ABB