U.S. power markets offer a range of environments in which demand response has evolved. Recent U.S. experience is best understood in the context of market fundamentals. While there have been notable successes, the transition to a low-carbon power sector is transforming historical paradigms, including the role of demand response.
Traditionally, demand response was principally a limited-use capacity product. In the future, however, responsive demand’s greatest value will be as an every-day energy product. Success will depend on who may participate and how they are compensated. Deployment of technology, retail energy and network tariff design, and consumer education will be key enablers.