Guidehouse Insights Estimates More Than 253 GW of Total Flexible DER Capacity to be Online Worldwide by 2033

Market drivers include advances in energy hardware and software that grid operators can leverage for DER flexibility

BOULDER, Colo., July 18, 2024 /PRNewswire/ — A new report from Guidehouse Insights examines the global market for flexibility from aggregated distributed energy resources (DER).

Power grid flexibility has historically come from dispatchable fossil fuel power plants, but world economies in pursuit of climate goals require alternative technologies and methods to reduce emissions from power generation. According to a new report from Guidehouse Insights, nearly 161 GW of total flexible DER capacity is expected to be online worldwide by the end of 2024. By 2033, this amount is projected to grow by an average compound annual growth rate (CAGR) of 5.2% to more than 253 GW.

“While customers continuing to adopt DER across all business segments might strain the grid—it brings an opportunity to grid operators,” says Roberto Rodriguez Labastida, principal research analyst with Guidehouse Insights. “When properly managed, controlled, and optimized, these resources can provide essential grid services with fewer emissions, and, often, at a lower price than conventional grid resources and traditional grid infrastructure.”

Advances in energy hardware and software are market drivers that grid operators can leverage for DER flexibility. Among the barriers to more widespread adoption are antiquated wholesale electricity market regulations and utility revenue structures, along with a lack of customer outreach and education. The regulatory landscape where a grid is located heavily influences a grid operator’s ability to use the various methods of achieving flexibility from DER, directly through the wholesale electricity markets, local flexibility markets, or distribution level programs, according to the report.

The report, Distributed Energy Resource Flexibility, examines the flexible DER market including retail and wholesale virtual power plants (VPPs) and traditional demand response (DR) programs. Regional level analyses for capacity, implementation spending, and revenue are presented across five major geographic regions for the period of 2024-2033. Capacity analyses are segmented by technology type (VPP and DR) and customer segment (residential and commercial & industrial) while revenue analyses are segmented by DER owner and the flexibility service provider. An executive summary of the report is available for free download on the Guidehouse Insights website.  

About Guidehouse Insights
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today’s rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.

About Guidehouse
Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has more than 16,000 professionals in over 55 locations globally. Guidehouse is led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.

* The information contained in this press release concerning the report, Distributed Energy Resource Flexibility, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.

For more information, contact:

Cecile Fradkin for Guidehouse Insights
+1.646.941.9139
[email protected]

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SOURCE Guidehouse Insights