Description

Demand response is in its nascent stage in Europe with sporadic pilot programs underway in the residential sector. Experts opine that demand response can achieve close to 40 per cent of the EU’s 2020 targets concerning energy savings and CO2 emission reductions. However, a deterrent for implementation is the development of infrastructure within Europe. Penetration of smart meters, which is an enabler of demand response, is still low, although it is accelerating. Although it does not have a direct impact on demand response, the potential still is inhibited since only a small proportion of customers will have even base infrastructure. This is a high growth opportunity market that will materialise steadily over the next decade.