Residential demand response (DR) is an emerging market in Europe, with an estimated 1.3GW of assets already contracted today. France accounts for much of this success, with the leading provider Voltalis boasting 900MW, while the Nordics, the Netherlands, Germany and Switzerland trail behind.
- By 2030, almost half of all vehicles sold in Europe are expected to be electric1 , a significant new load on the grid, which will need to be actively managed. Equally, with the cost of home storage falling, new opportunities to integrate and optimise existing photovoltaic (PV) systems are also increasing.
- The residential sector has huge untapped potential with over 200GW of installed assets of which HVAC and hot water heaters account for 97%. However, accessing these assets for DR is challenging; less than 1% of all existing residential electric HVAC and hot water assets have inbuilt connectivity.
- Conversely, it’s common for electric vehicle charge points and home batteries to have connectivity enabled (60% and 55% of the installed base, respectively) but the installed capacity remains small (5.5GW). Of course, connectivity, is just one factor in making accessing these assets for DR possible.
- Over the next five years, 65GW of new assets are expected to join the grid edge across major European Markets. The variety of assets in this segment is wide; each with different characteristics around its potential scale, accessibility, flexibility in usage patterns and ease of customer acquisition; which has led market players to select different types to focus on.