According to a recent report, the proposed capacity market in th UK with increase the growth in deals that encourage power consumers to lower use at peak times with reward schemes – so called demand response.
Market analyst Navigant Research produced the report which predicts that demand response deals are set to grow in number in the EU by over a quarter. Several areas in Europe including the UK are planning to introduce a capacity market that will assist with the adoption of demand response.
The report found that the annual expenditure for demand response in the EU will increase from around £87 million now to £485 million in 2020 as the number of sites deploying demand response in the EU would increase from 1.87 million now to 2.56 million.
Throughout Europe regulatory agencies have begun to change the laws affecting the use of demand response or are starting to take a serious look at the need for an overhaul of regulations blocking such use.
Established and new entrant aggregators and vendors in the demand response energy management market are accumulating in the EU according to Navigant. Despite a more favourable legislative structure emerging, Navigant found in the overwhelming majority of member states, regulations continue to block consumer participation in demand response programmes, and regulatory barriers continue to be formidable.