Regulation and Resource Mix Drive a Demand Response Capacity Contraction of 2 GW

By [email protected] After FERC Order 745 was issued in 2011, demand response procurement increased steadily from 26 gigawatts in 2012 to 33 gigawatts at the start of 2016.

However, the effects of looming uncertainty over jurisdiction and compensation for demand response (DR) began manifesting in 2016. As a result, the total estimated DR availability in ISO/RTO territories dropped from 33 gigawatts to 31 gigawatts between Q1 2016 to Q1 2017, according to GTM Research’s latest U.S. Wholesale DER Aggregation report.

Source: FERC, GTM Research

The decline comes at a time when state- and federal-level regulation is impacting the requirements for participation in wholesale services, presenting

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