US power markets offer a range of environments in which demand response (“DR”) has evolved. Recent US 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 DR.
Traditionally DR was principally a limited-use capacity product, but in future responsive demand’s greatest value will be as an every-day energy product. Success will depend on who can participate and how they are compensated. Deployment of technology, retail energy and network tariff design, and consumer education will be key enablers.