DSR report investigates risk and reward

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A survey carried out by Mission Critical Power’s sister publication The Energyst confirms that most businesses that participate in demand-side response (DSR) are motivated by money. However, they want revenue certainty and assurances that their core business will not be affected. 

The fourth DSR Report reveals that there is a desire for suppliers and aggregators to simplify their options in language that the finance, operations and engineering departments can all understand. As well as price certainty, they want stable policy and regulation. 

Most of those participating in DSR reported they are broadly satisfied with the outcome. For those not participating in DSR, lack of knowledge, perception of risk, insufficient rewards and/or lack of revenue certainty remain barriers. 

Those providers unsatisfied with DSR were asked why and responses mostly revolved around revenue: its unpredictability, declining value or that it was insufficient. For those using diesel back-ups, 50% say MCPD will stop them; 40% don’t know. 

Only 10% said it won’t stop them. Key barriers for non-DSR participants remain unchanged. The perception of risk of disruption to core business was cited by 40% as was a lack of understanding of the market and available options. 

Most (83%) of those that do not participate in DSR would be interested in doing so if it did not affect their operations (77% in 2017 survey). 

However, trusting third parties with key pieces of kit was highlighted as a significant barrier. While the sample is made up from different participants to previous surveys, lack of trust in third parties is cited by more respondents this year than in 2017 (13%) and 2016 (23%). 

Return on investment is the highest cited reason for not doing DSR. This compares with 31% in 2017 and 24% in 2016, though different sample caveats apply. 

To download a free copy of the report, visit: www.theenergyst.com/dsr

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