Ryan Hledik, a senior associate in Brattle’s San Francisco office, co-authored a report with Kelly Smith of Johnson Controls that explores why demand response (DR) has gained traction in some areas and not others.
The authors used publicly available data to assess the relationships between DR participation and potential drivers, and explore the evolution of DR in recent years as well as the factors that will influence its role in the future. The report identifies some of the key drivers of DR adoption, including energy price levels, market structure, demand-side policy, generation mix, and reserve margin. However, they conclude that the reality of DR evolution relies on a combination of these and other drivers. In addition, they suggest that their analysis provides a framework for future research, which could include more rigorous econometric analysis.
The report, “Drivers of Demand Response Adoption: Past, Present, and Future,” is available for download below.