Industrial Demand Response Payments Will Reach $4.3 Billion Annually by 2019, Forecasts Navigant Research

  Industrial Demand Response Payments Will Reach $4.3 Billion Annually by
  2019, Forecasts Navigant Research

Business Wire

BOULDER, Colo. -- June 13, 2013

Since the inception of demand response (DR) in the mid-1970s, electricity
customers in the industrial sector have represented an important target market
in the United States. As DR is increasingly adopted in other parts of the
world, industrial facilities will also become a critical customer segment in
other countries. According to a recent report from Navigant Research, annual
revenues, in the form of curtailment payments for load reductions for
industrial customers participating in DR programs, will reach $4.3 billion by

“Because industrial power users can contribute unusually large amounts of load
reduction – even from just one plant – the industrial sector offers unique
opportunities for demand response,” says Marianne Hedin, senior research
analyst with Navigant Research. “The financial incentives paid by utilities,
grid operators, and curtailment service providers often represent a
substantial annual revenue stream to industrial customers, especially those
who are able to curtail a large amount of load.”

DR participation by industrial energy users largely depends on the flexibility
of their production process, according to the report. In some instances,
process manufacturers, such as food and beverage companies, can potentially go
without power for many hours, since they usually run a cold storage operation
with buried refrigerators that only begin to thaw after many hours without
electricity. Discrete manufacturers, on the other hand, tend to have greater
difficulty participating in load curtailment because they usually have less
flexibility to modify their processes.

The report, “Demand Response for Industrial Markets”, examines the global
market for industrial demand response, detailing the breakdown of peak load
curtailment into two major customer segments: small/medium and large/very
large industrial customers. The report provides data on how much these
different industrial DR participants receive in payments from utilities, grid
operators, or aggregators when they reduce their load at peak times. The
market forces and competitive landscape are explored in depth, and 21
industrial DR vendors are profiled. The report also provides forecasts for
industrial peak load curtailment, in terms of capacity, and reduction
payments, broken down by region and by market segment. An Executive Summary of
the report is available for free download on the Navigant Research website.

About Navigant Research

Navigant Research, the dedicated research arm of Navigant, provides market
research and benchmarking services for rapidly changing and often highly
regulated industries. In the energy sector, Navigant Research focuses on
in-depth analysis and reporting about global clean technology markets. The
team’s research methodology combines supply-side industry analysis, end-user
primary research and demand assessment, and deep examination of technology
trends to provide a comprehensive view of the Smart Energy, Smart Utilities,
Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional
information about Navigant Research can be found at

About Navigant

Navigant (NYSE: NCI) is a specialized, global expert services firm dedicated
to assisting clients in creating and protecting value in the face of critical
business risks and opportunities. Through senior level engagement with
clients, Navigant professionals combine technical expertise in Disputes and
Investigations, Economics, Financial Advisory and Management Consulting, with
business pragmatism in the highly regulated Construction, Energy, Financial
Services and Healthcare industries to support clients in addressing their most
critical business needs. More information about Navigant can be found at

* The information contained in this press release concerning the report,
“Demand Response for Industrial Markets,” is a summary and reflects Navigant
Research’s current expectations 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 Navigant Research nor Navigant undertakes any
obligation to update any of the information contained in this press release or
the report.


Navigant Research
Richard Martin, +1-303-493-5483
Laverne Murach, +1-202-481-7336
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